530 User <user> cannot log in, home directory inaccessible

I am repeatedly getting the error mentioned in the title after setting up new FTP site in IIS. I tested access to the server through the firewall with the Default site so I know that is not an issue. I am using an isolated site according to http://support.microsoft.com/kb/555018/en-us. I have created the directory structure according to the article, and have gone as far as allowing Everyone Full Control (still fails). This is on a DC so I cannot use the solution here: http://www.experts-exchange.com/Operating_Systems/Windows_Server_2003/Q_21198431.html. Since I am getting the error after entering credentials I am assuming this is a permissions (or other) issue, and not the user account. I have tried using several different AD accounts. Anyone have suggestions?
ahrimannAsked:
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ahrimannAuthor Commented:
I should also state that I am using an alternate port for the site, but have tried with the default 21 as well -- same error.
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ahrimannAuthor Commented:
Here is a bit more info: I am experimenting with the Default site and am able to log in successfully on the alternate port, but when I try to list the contents of the root directory with either "ls" or "dir" I get:
500 Invalid PORT Command.
150 Opening ASCII mode data connection for file list.

and it just hangs here until I Ctl+C and then:

Aborting any active data connections...
425 Can't open data connection.

Curiouser and curiouser (for me)
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ahrimannAuthor Commented:
Clarification:
If I use "ls" I get the above errors. If I use "dir" I get:
150 Opening ASCII mode data connection for /bin/ls.
Aborting any active data connections...
425 Can't open data connection.

I did not have to Ctl+C, it timed out.

BUT, I was able to create a directory w/mkdir
???
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ahrimannAuthor Commented:
OK, figured out I needed to create a directory structure with the domain in it and can now log in successfully. But I still cannot execute any commands (ls, dir, put etc)
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ahrimannAuthor Commented:
Guess this is a different question now, so I am closing, and opening a corollary question
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