Problems with adding a new user to sftp

Hi guys,

I have fallowed the http://guvnr.com tutorial on setting up the vps.

At first I have only added a user and no groups to own the /home/public_html folder.

Now I have tried to add another user to sftp. I want to limit him into only one subfolder within that publichtml folder. So I created a linux user, gave him sudo permissions. Next I: chown -R test /home/publichtml/mypage.com and chmod -R g+w /home/public_html/mypage.com . When I try to use sftp to connect with that user it fails. If I use the main users login, it works. I'm missing a step or did I do something wrong? I'm using Ubuntu 8.04, ssh and nginx .

Thanks :)