To bar telnet access (and believe me I do recommend it) open a terminal and type:
vi /etc/xinet.d/telnet
which will open 'telnet' configuration file in vi. You can open the file in any text editor really, just make sure to leave it as plain text. This is how my 'telnet' file looks:
service telnet
{
disable = yes
flags = REUSE
socket_type = stream
wait = no
user = root
server = /usr/sbin/in.telnetd
log_on_failure += USERID
}
Also, you will have to look at the manual for adding the recursive directories for your users. Look into the httpd.conf file and you will add this type of information based on your distro and apache version:
#<Virtual Host>
Redirect /harry/
http://www.linuxrules.net/~harry/
good luck, and read the manuals, they know more than me everytime.