Step 1: To add new user to sharepoint site "My New Site" Sharepoint Site.  Click on "My New Site" Sharepoint site in top link bar and click on "Peoples and Group" from left pane.

Step 2: Click on "New" from Menu link bar and select "Add User" to create new sharepoint user for "My New Site"

Step 3:  Type user name in add user box.

Enter Name in add user box.  If you know user name you can simply type in and click on check name or you can even search for user name by clicking on browse user button and search for user.

Lets try both way.  First type user name in add user box and press check name button.

So lets type user which doesn't exist in Active directory of windows server 2003 and click on "Check Name" button.

As "James bond" user is not available in Active directory of windows server 2003, when you try to click on check name button it will give you error that "No exact match was found".  In order to add this user you need to first create user in active directory of windows server 2003.

Now lets add user which is already exist in active directory of windows server 2003.

Lets type in user name "Harsh Patel" which is already exist in active directory.  Press check name button, this time it had display name with underline, indicating that its a valid user to create for sharepoint site.

Now lets try to search user by clicking on browse button, which is next to check name button.

Type user name to be search in Find box, and Click on Add button to add selected user.  You can also add multiple user and press ok button to create all users to access sharepoint site.

Step 4: Give View only permission to new user.

You can select permission based on permission you want to grant particular user.

Step 5: Check the Send Email box if you would like to send welcome email to user.

Finally send a welcome message to user and create user by clicking on OK button.

New user is created and assigned Viewers only permission.