Resolution
Usually when a user dedicated ftp does not work and produces the "Login failed" error, it means that the /etc/pam.d/ftp fileis not configured properly. You need to change the entry for this file to:FreeBSD does not support PAM session directives. If you remove the following line from the FreeBSD section of README.PAM, PAM should work properly under recent versions of FreeBSD:#%PAM-1.0 auth required /lib/security/pam_listfile.so item=user sense=deny file=/etc/ftpusers onerr=succeed auth required /lib/security/pam_pwdb.so shadow nullok account required /lib/security/pam_pwdb.so session required /lib/security/pam_pwdb.so
ftp session required pam_unix.so try_first_pass