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right, so each 'client' can have many sites, but each sites gets one ftp login?
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Yes. Every site runs under its own Linux system user to isolate sites, so that other sites get not affected when a site gets hacked.
If you want to add more then one domain to a site e.g. wehn you use a cms system that is multodomain capable, then add the other domains as co-domains.
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it seems the "login data" for the client is for the ISPConfig panel only, not ftp?
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Yes.