FTP Access denied

Hi,

When I login with the main account of a "virtual server" using SFTP I can create folders in the public_html folder, but when I go into a folder and try to create a folder there I get a "permission denied" error.

I tried creating a new ftp account using the "Add a website ftp access user" under "Edit users" I get the following error when I try to connect: "Received unexpected end-of-file from SFTP server".

Any help is much appreciated.