After much searching I found an article that goes into detail about ftpd being broken in OS X.2 for anonymous ftp (server). So, I started searching around and found www.pure-ftpd.org and downloaded, compiled and installed it. Worked like a champ. Pure-ftpd touts itself as a fast, secure ftpd. Anyway, I then went into /etc/xinetd.conf/ftp and modified the pointer from the standard ftpd to the new pure-ftpd and changed the server arguments to better line up with pure-ftpd. It all worked perfectly. So, now when I enable or disalbe ftp through the System Preferences panel it is pure-ftpd that starts or stops.

If you want more info drop me a line at jrichardson@yobbo.net

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Jim Richardson

This worked great for me! Thanks.
The long and the short of it seems to be:
1) create a user and group named ftp using netinfo Manager
2) create the appropriate directories in /Users/ftp
3) get pure-ftpd
rock on!