FTP Configuration for Server 2008

I have just upgraded my server from Server 2003 to Server 2008. With all other porting problems I found out that you cannot just take the FTP configuration on the disk and use it as is.

First of all you need to download the recent version of FTP Services because Server 2008 is released with the older version 6.0. http://www.iis.net/expand/FTP

I had a problem with user isolation on server 2008 FTP 7. On IIS summary I kept getting the event "User XXXXXX failed to log on, could not access the home directory /.". There is also another event in the system event log saying that the user name / password is incorrect.

The resolution to this is to move all directories of isolated users to the folder "LocalUser" under the ftp root. So for example if the FTP site is directed to C:\FTP_ROOT then the user MyUser should be located under: C:\FTP_ROOT\LocalUser\MyUser.