Note: Please read the “IMPORTANT INFORMATION” link!!!
Issue: Authentication to use the FTP service on Snow Leopard Server fails with every user. Restart of service and server do not resolve issue. AUthenticating with other services are fine.
Resolution: Appears the file “ftpaccess” is corrupted. Replace with default ftpaccess file:
Stop the FTP server
sudo cp ftpaccess ftpaccess_bak
sudo cp ftpaccess.default ftpaccess
Start the FTP server