If a directory exists with the same name as the user name, the user will be automatically placed into that directory when logging in through an FTP program.
Unfortunately, there is no way to restrict the user to this directory, as they may back out into your root directory and browse the other directories.
The only difference is, based on the permissions you've set for them, they will be unable to do anything outside of listing your files.
Both user names and passwords are CaSe SeNSiTiVe.
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