I'm still playing with SFTP and have a number of issues:
1) If I run sftp user@host on the host itself I can successfully connect to sftp. However if I try this through Core FTP - I get "Permission Denied - Data port failed - Error loading directory"
2) If I try and connect to SSH through Putty I login and am booted straight out - I guess the Permission denied issue above has different effects for Putty
3) Is it possible to have some users Chrooted with others not? Its just if I connect through Putty I want full server control but with SFTP i'm limiting the path access. Does sudo break out of restrictions set in place for SFTP/SSH?
4) Oh and late addition: SSH from the localhost errors as well with permission denied? SFTP fine.