Ok I got rid of the SQLAuthenticate error by changing that to on, and like the message suggested, using AuthOrder, like so:
AuthOrder mod_sql.c mod_auth_file.c
The log now actually logs when the session is requested too ( I am running it verbosely with proftpd -nd5 2>&1 >& debug.log) It now says:
trinity (::ffff:192.168.0.1[::ffff:192.168.0.1]) - FTP session requested from unknown class
So i'm going to look that up.