limiting vsftpd user to subdirectory of home directory
 

How do I limit a user to a sub-directory of their home directory? I tried editing /etc/vsftpd/vsftpd.conf, and added this:
But it still doesn't work. It still loads the user directory. I did restart the service.

You're just setting their login directory in the vsftp conf file, their entry point into the system. I think if they have rights to other directories then they can exercise those rights. Are the users logging into /home/$USER/files when they log in and CWD'ing to /home/$USER (for example)?
Perhaps a better approach is to create the users without home directories and make them part of the "vsftp_users" group, instead. Create a directory in /usr/local/share/vsftp/$USER (for example) as an entry point to which they have rw(x ?) rights and don't give them rights anywhere else on the file system.

I read about changing the home directory in /etc/passwd to the folder you want them to land in but that doesn't work.
I have a general VSFTPD directory for any user to access. I set it up like you said in /usr/local/... I changed the way it was set up. I am able to access it after traveling out of my / dir in filezilla, and i can write to the vsftpd directory. i just don't land directly in it.

You would probably have better luck creating the users without a home directory at all. No matter where you put it, the users will have rights to their home directories and all sub directories (unless you change the ACLs).
Just point them to the only directory that they have rights to on the Server and they will be effectively bottled up.

The user does not have a home directory. I just don't know how to re-direct them to a directory where they are locked there.

Is how I've done it in the past.

That just changes the login prompt default directory. I had to change the home directory in /etc/passwd for it to work, but not sure if thats the right way of doing it.