I have a web server which does virtual web hosting and for each virtual host, each virtual user has been created which has access only to its respective home directory and can upload via ftp.

Now i want to create a new user(not for a new website) which can have access only to its home directory when it does ftp upload and download. So is it possible to do that because the new user is not for a new website and in httpd configuration what should i give in the "ServerName"?

Or is it ok if i give the domain name of the web server hosting those? will it not conflict?

EXAMPLE: <VirtualHost *:80>
ServerAdmin admin@xxx.com
DocumentRoot /var/www/html/sarah
ServerName www.xxx.com
ErrorLog logs/dummy-host.example.com-error_log
CustomLog logs/dummy-host.example.com-access_log common
</VirtualHost>

where xxx.com is the domain of the webserver and sarah is the new user.

Any domain name that is pointing to the server should work. If the login is not associated with any website, you could just use the external IP as well. It shouldn't be a conflict, because it will just see that "sarah" is logging into ftp, and give her access to /var/www/html/sarah.

Please correct me if I am wrong.

Why are you using apache to give someone ftp access ?
Just create a user with ftp access, no apache config needed.

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