Trying to set up FTP on Server 2003

By LostinWindows ·
I am trying to setup FTP or sftp on a windows 2003 server. I have a couple of quick and hopefully easy questions about this.
1. I want to restrict any ftp user to a specific directory or group of directories. How do I do this? Can i set up these directories based on user id?
Is there a program that I can use to for sftp instead of regular ftp? I have big concerns about security in ftp.

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