The dir's permissions are wrong.
http://www.ioftpd.com/kb/view.php?kbid=31
You can also create all the dirs with the users' names in some kind of /home directory. Then (if you're using FlashFXP) select all the dirs, enter
Code:
SITE CHATTR +h %f "-%f"
in the raw command line, press the "return" key and wait for the client to chattr all the dirs.