I have this I dea in my head, that I can set up a directory on my site where I can have clients log in via an ftp program, and only get access to the files in that directory. I am sure this is possible, people have given me access to such folders on their sites. How can this happen with dreamhost?
Search through the wiki or the knowledge base for detailed answers – it sounds like you’re looking for anonymous FTP. Unfortunately, I think you need a unique IP for that.
I worked out a sort of solution by setting up a user in its own group on the server, and basically crippling it as much as possible (lots of privilege changes), plus hiding the username/password in an apache redirect… but this is STILL not really 100% secure, and I’m only giving it out to friends and family. And it was pretty complicated to set up – I don’t even remember all of the steps, so I’m not going to try to list them here.