[ubuntu] creating ftp users in ubuntu server (vsftpd)

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http://ubuntuforums.org – hello i have a ubuntu server virtual machine for testing, i have install vsftpd so i can upload and download files to this machine via FTP, now i can access it anonymously but i do not know how to set it up where it ask for user authentication. there is currently only one user profile on the server (mine) will i have to create more or what ? and how will i define the users home directory when they connect to the server? (Hardware)