IIS7 - ftp access in isolation mode

Hi,

I manage a server hosting FTP on IIS 7 which isn't in a domain. There is a site running under isolation mode with about 4 users (local to Windows).

For a client requirement, I have created a separate directory and added it as a virtual directory under the ftp site and mentioned specific account credentials and tested it successfully for "Authentication and Authorization" and created an authorization rule for the account at the site level and the virtual directory level. But still I get a "530 Home directory inaccessible error".

What have I missed if any or any suggestions.

Thanks