Well, after some more web scouring, I found another shell (rssh) that attempts to do the same thing as scponly, but even better, I can across this:
http://archives.neohapsis.com/archives/ope...01-04/0218.html
Basically, you simply set the user's shell to sftp-server. On my plesk/rh7.1 box, this is /usr/libexec/openssh/sftp-server. Seems to work just fine.
One note: you have to add it to /etc/shells or it break's the user's ftp. So, to summarize:
usermod -s /usr/libexec/openssh/sftp-server username
then, edit /etc/shells and add:
/etc/libexec/openssh/sftp-server
to the list. Voila, secure file transfers. ws-ftp supports sftp in the latest version, as do freebies filezilla, winscp, and ixplorer, so it's getting easier and easier to get people to use it.