Much easier if you're comfortable at a root shell:
Code:
useradd USERNAME
passwd USERNAME
This should give you a username you can use with hostname for ftp login, and directory at [/i]/home/USERNAME[/i].
You can change the home directory at the useradd command (see man useradd or by simply editing the /etc/passwd file. If you do the latter, then no need to even restart anything; just make sure the path exists and when done you can simply delete the /home/USERNAME directory.