I am a GUI kind of guy and since Apple is/should be/is famous for, I anticipate that the Server Preference pane should've been better than what it is.
Sometimes life just doesn't have a GUI. If you are going to host for other people, you will have to get your hands a little dirty and use terminal. My previous post held the commands necessary to enable the FTP server on Mac. It is very important that you get that part done.
What I really want to do is the following:
I host a couple of domains on my Mac with Server installed.
The domains are not mine, but friends of mine.
Domains and email work good, but I can't get the FTP Server to host proparly - I want the different domain owners to have FTP access to their respective domains. So they can update their web sites without my help.
Step 1: For each of your customers, create a User account via System Preferences. Each user will have a home directory in /Users/xxxxxx. Make them "Standard" users, not Administrators or Sharing Only. Make sure you have the passwords to give to your domain owners.
Step 2: When you create a new domain in OXS Server, you have the option of choosing the location of where the files are stored. (It's the "Store Files in" option) You can even change the location of an existing domain. So, for each of your domains, change the location to the respective /Users/xxxxxx.
Step 3: Tell your users they can access their domain at the following URL:
ftp://<username>@<domainname>
This works in Safari, Firefox, IE... etc (it's a pretty common feature of browsers to handle FTP)
voila. If you experience file permissions issues either for your users, or the web server. Make certain the OWNER of files should be the user accounts, and the web server should run as the root user. This will avoid any permissions issues.