Setting up folder permissions was the single most difficult part of setting up ioFTPD for me, I hope this helps someone else.
Login as M user.
Start with CHMOD and CHOWN to set all the ownership and default permissions for directories, then use the detailed permissions to add "detail" and exceptions. For example, most people would want to have several download directories and one upload directory. You want users to download from the download directories only and upload to the upload ones only. CHOWN -R to yourself and CHMOD 755 all your download directories, now nobody except you or M users can upload to them. CHMOD your upload folder to 777, now anybody can upload to that folder. Note: The default CHMOD for new directories is 755, unless you change ioFTPD.ini, so whenever someone makes a directory inside there, it will be CHMOD 755 and only that user will be able to upload to it, but they can make their own. Now you can edit the detailed permissions for directories and add exceptions like:
Download = /Uploads/* !*
to prevent downloading from the upload folder, and stuff like that.
There's more in the Knowledge Base about how to use wildcards for that, and advanced permissions.
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