I need to set up some ftp users on my server. The way my friend told me, was to do an adduser command in ssh. This creates an actual ssh login to my server though. I just want them to have a ftp account with their own directory. Is there any command in cpanel or webhost manager that I'm overlooking?

Or is there a good website that goes over some simple commands like this? I've searched but haven't found a site that doesn't completely confuse the crap out of me =)

Unless I've misunderstood, you need only setup an account, then from there access your ftp manager, and add an account for them, specifying a directory that their access is restricted to. You sure don't want to give anybody root access to your server.

Conversly, if you're dealing with an individual unfamiliar with ftp, you can give them access to the user account, and they can then upload files in the rudimentary file manager in Cpanel.

Hope this helps.

In cpanel there is an FTP Manager. Then under that there is an FTP Accounts. Then an Add Account. However, I did not go further and don't know if they have their own directory or not.

I just created a mambo site for about 20 users. Each user can signup on the front page, submit articles, news items, upload files, etc. Each act has to be approved by the administrator before reaching fruition, i.e. appearing to the general public. If this sounds like something you would like take a look at:
http://mamboserver.com

Of course creating users with their own mini account (mail, web, FTP, and SSH if you allow it) is a piece of cake in Ensim. I signed up for an Ensim server just to learn it. I think I prefer it over cpanel although I still use cpanel.

I should add that mambo is a template driven engine with lots of automation.