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It is all very confusing for my end users. It is a very foreign method of setting user names.
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Thats the way most commercial ISP's do it. The largest german internet service providers use prefixes based on a client specific ID or username for FTP users. I've never seen a single ISP that uses email addresses for FTP accounts, as this will really confuse users when they have a @ in their username.
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but it is confusing on why we get the option to change the settings.
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The option is there to enable administrators that are aware of all implications that their change might cause to change it.