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I want to know if I can add more users to my FTP server which is used on the Sharing part of System Preferences.

I want each user to have a folder which they can access on.

The problem is when I try to add an account, and try to login it will deny access. Please let me know what the problem is.

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    Does the user have a home directory? If the FTP client can't chdir to the home directory you will have issues. – John T Feb 5 '11 at 20:34
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I have tried to reproduce your problem, but on my Mac it works fine. Maybe you should try to repair your HDD with the DiskUtility.

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It appears as though defining user access in System Preferences -> Shared only applies to AFP sharing, not FTP. This means that if your new user is a "Sharing Only" account, it will not work for FTP. FTP sharing for all standard accounts is active regardless of what access is defined in Sharing as long as the FTP checkbox is checked in "Options..."

Try creating a standard user account. Their home directory will the the one they will have access to, but keep in mind that this will allow them to browse the same parts of your filesystem that they could if they did a GUI login locally. (Since most OS X directories have read permissions allowed for everyone.)

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