ProFTPD and PAM authentication

[Tokuma]

I am new to both Linux and Ubuntu so please forgive my ignorance. I recentally setup a computer as a linux server using xampp. The entire server works fine except the ftp part of it. I keep getting the error 503 Login Incorrect. After looking around on the interrnet I saw that the error I was experiecing had somthing to do with the PAM authorization system. No matter what I do I cant figure it out. Basically what I want is that every user that I have on my pc can have their own ftp directory. So for example if I want to give a friend some free webhosting all I have to do is make then a user, make a new dir in my htdocs folder, add a symbolic link in their home dir called www, then add that user to the group ftp. Any help would be appreciated.

here is my proftpd.conf file

ServerName "Caffeine-Overdose"
ServerType standalone
Port 21
Umask 022
MaxInstances 30
User ftp
Group ftp

DefaultRoot ~/www

<Directory /*>
AllowOverwrite on
</Directory>

<Limit WRITE>
Allow from all
</Limit>

<limit PortPasv>
AllowAll
</limit>

<Anonymous /home/ftp>
User ftp
Group ftp
UserAlias anonymous ftp
MaxClients 10
RequireValidShell no
AccessGrantMsg "Welcome to my FTP Server!"

<Limit WRITE>
Deny from all
</Limit>

</Anonymous>