I was able to figure it out
I needed this file to run /usr/sbin/in.proftpd
and I figured out it was missing: /etc/proftpd.conf
I copied over the file and got the service to run.
I seems that KERBEROS_V4 is trying also trying to run.
the error msg is:
500 AUTH not understood
KERBEROS_V4 rejected as an authentication type
I guess this is where my original problem came from.
Hope this helps somebody.