Ok where to start...
I have set up the following dir for an ftp.
/home/ftp/downloads
And the following users to test it with.
Pedderz
Tester1
Tester2
Users can log in are locked in fine but...

I reuire it so that Tester users can only download/read info and not write stuff or delete, however Pedderz needs to be able to upload and delete...

I have tried various ways to achieve this with no success, I cannot have my clients (Tester user in this case) being able to delete files. But I (Pedderz) must be able to do this! Also sometimes I will need to allow user to have delete rights as well. But I dont seem to be able to get this set up correctly!

It seems that its either all or nothing! is there a way to get around this or not?

At present I (Pedderz) upload files to a entirely different area and move them across later, but this is not ideal!

I have changed owner rights and created other groups with no success, should this be set up in the proftp.conf file or in permissions/user settings?

Any help appreciated

It is in permissions/user settings. Try to check users directories permissions.

And make sure this is uncommented in proftpd.conf :
<Directory /*>
AllowOverwrite on
</Directory>