I am running RH 3.0ES with VSFTP. I want to restrict some users from
leaving home directories or from browsing server directories. Other I
only want to see a few directories. Here is what I have set up:

Directory Structure (Permissions):
/home/user1 (0755)
/department/customers (2770)
/department/distributors (2770)

Users:
User1 (home dir is /home/user1)
Distributor (home is /department/distributors)
Customer (home is /deaprtment/customers)

Groups:
Distributor
Customer
Users

Here is what I want to accomplish:
User1 can have full rights to his home directory and to the
sales/vendors directories. User1 can only browse these directories.

Distributor can have read write to the customer/distributor directory.
Distributor cant delete anything. Distributor can only browse these
two directories.

Customer can have read write to the customer directory. Customer cant
delete anything. Customer cant browse out of directory.

Suggestions on how to accomplish this?