LinuxQuestions.org - ftpchroot isn't making a difference

Hey all, I've got to figure this out!

I have this server that I'm told get up and running as a Web/FTP server- no, I know nothing of Linux and I have patches of hair missing from my head. I've worked for 4 days straight on this, and I'm about to throw the darned thing out onto the pavement!

What I've got -

Linux RedHat 7.1
wu-FTP (came with build)
Apache (came with build)

I've got Web up and running sufficiently wonderful :)

I've got users who can FTP into their HOME directory which I've successfuly changed to the /var/www/~website directory and they can upload and download just fine. Only problem is they can CD upwards - not too secure.

~I've tried to change the permissions using chmod (this ends up denying http access)
~I've tried to activate the ftpaccess file and adding the line "restricted-uid mailmonkey"(no matter how many times try retyping and minimizing the file, it denies FTP access completely...hmph!)
~I've created the ftpchroot file and added usernames, resarted FTP, resarted the entire server even, but it doesn't seem to make a difference whether that file is there or not. I DON'T GET IT!!!!

If you can help, and clue me in on what I'm missing here, I'd be so happy that my hair might start growing back, and this headache might go away! I'd even kiss a duck! Every helpful thing I find (believe me, I've searched high and wide) can say two completely different things, and I don't know what to do!!!!