For some reason the FTP server is setup to not allow the use of the CHMOD command ...
To allow CHMOD, you will need to create a custom template ..
1. Access the command prompt ..
2. mkdir /etc/e-smith/templates-custom/etc/proftpd.conf/ -p
3. cp /etc/e-smith/templates/etc/proftpd.conf/10LimitSiteChmod /etc/e-smith/templates-custom/etc/proftpd.conf/10LimitSiteChmod
4. pico /etc/e-smith/templates-custom/etc/proftpd.conf/10LimitSiteChmod
inside pico, modify it to say:
{ # allow all chmod }
AllowAll
5. Exit & save ..
6. /sbin/e-smith/expand-template /etc/proftpd.conf
hope this helps