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FTP no longer allowing access to new users

Not quite sure what to make of this. Our FTP access is based strictly on isolated user accounts, so nothing is tied to AD. All users are set up locally. Yesterday, I created a new folder for a user and then created the new user ID. I then, like I always do, assign r/w security permissions to the folder for that user. Yet, we can't get on via FTP now. Any time we try to access the folder via FTP, we get the following error: "failed to log on, could not access the home directory /." The odd thing is that I can get on via Firefox, but if I refresh the page, I get that error message again.

NOTHING has changed on the server that we know of. I deleted the directory and user and re-added them. Still won't work. I have a consultant looking at this issue and he's stumped. We really need to be able to create these new users and directories and this is holding up a lot of work for us.

One other thing. I downloaded filemom.exe and when this directory is accessed, this is what's logged: 2:49:35 PM      inetinfo.exe:4152      OPEN      E:\FTPDATA\LocalUser\******\      NOT FOUND      Options: Open  Access: Read      
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