You will need to modify the templates. I'm not sure if you would have to create any custom templates, but the way I did it was modify the proftpd.conf templates in /etc/e-smith/templates/etc/proftpd.conf.
You'll have to insert this line within one of the files you see.
DefaultRoot ~
This means a users default root directory is their home directory.
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Currently, my ftp users would only use their ftp account to modify their virtual domain. So I just changed their home directory to the iBay directory (make sure permissions are set correctly). This worked like a charm.
Franco