Guys - I enabled "anonymous" login for my ftp server by commenting this line in the /vsftpd.conf file.

# Allow anonymous FTP? (Beware - allowed by default if you comment this out).
#anonymous_enable=NO

Now when I try to login with "anonymous", I can't get in to the FTP server. Then I tried using my normal user name & password and still could not get into my server. I then went back to the "Allow Anonymous FTP" and "uncommented" the line again and now I can login.

1. How can make this so I can allow anonymous logins?

2. When "anonymous" logins are enabled on my server, when the user connects, what directory are they directed to on my linux server by default?

To be sure just uncomment the line and change it to
anonymous_enable=YES

That's what I have and it works for me. The directory in which to put the user can be set with
secure_chroot_dir=string

See the man page for vsftpd.conf for more info.