Hi and welcome to LQ
1. If you're running pure-ftpd standalone, then you can use:
ps -ef|grep pure-ftpd
2. Are you sure that there is no other ftp server running. Disable pure-ftpd from xinetd, restart xinetd and run:
netstat -tanpl|grep 21
to see if there is another daemon listening on port 21
Which should chroot everyone but when I log in with a user created with the useradd command he can still get to other folders and perform edits.
Could be because you use -L without a number. Better remove the -L option completely. Also IIRC you have to add "/./" after at the end of the home directory of a system user to keep him chrooted.
I get the Usage Manual and then
WARNING: that pure-ftpd server hasn't been compiled with puredb support.
You should have compiled pure-ftpd with the --with-everything option (or at least with --with-puredb).
You should read this
for managing virtual users.