Hello trickykid, and thank you for your quick reply.
I think you are correct about the problem...
I've done the following regarding ownership, you can tell me if this is correct:
Created a user group and shared directory.
groupadd ftp-users
mkdir /home/ftp-docs
Made the directory accessible to the ftp-users group.
chmod 750 /home/ftp-docs
chown root:ftp-users /home/ftp-docs
Added users, and make their default directory /home/ftp-docs
useradd -g ftp-users -d /home/ftp-docs user1
Created user password
passwd user1
***********************************
Here is my mistake (I think)!
Changed the permissions of the files in the /home/ftp-docs directory for read only access by the group
[root@bigboy tmp]# chown root:ftp-users /home/ftp-docs/*
[root@bigboy tmp]# chmod 740 /home/ftp-docs/*
***********************************
What should I use here?