Originally Posted by falko
Yes, but your users must then have Shell access which is a security risk.
To clarify, I agree with Falko. It's just that I already seem to be working in too many environments where people need Shell access anyway. And then, of course, SSH is less of an evil than plain FTP.
Depending on how you define "Shell" access you might be happy with other solutions like Falko's Chrooted SSH Howto http://www.howtoforge.com/chrooted_ssh_howto_debian