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I am setting up new virtual servers on a newly installed Virtualmin/Webmin server, and all the virtual servers I create seem to only allow access via SSH, no FTP (to both root and FTP user)
Well, root isn't normally available via FTP for security reasons, since the password is transmitted in plain text.
However, it should work for your other users.
What error do you get when trying to log into FTP as a Virtual Server owner?
-Eric