Since the Security permissions on the FTPROOT folder look good (assuming that, other than Everyone having FC rights, there's no groups that are Denied rights??) then try this.
Look at the Local Security Policy snap-in (in Control Panel -> Administrative Tools -> Local Security Policy).
Expand Security Settings -> Local Policies -> User Rights Assignment.
Look at the members who have the right "Access this computer from the network", and make sure that some non-admin group is listed that the users who are failing to FTP in belong to. By default, EVERYONE has the right, but you can remove EVERYONE (I do on machines on DMZs.)
If this is the case, then make a group, add the users to the group, and add the group to have the rights. Or use a group that already exists and add it.
I've seen it how FTP in IIS does not allow connections due to this security permission.