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proftpd-1.2.0pre3-6.i386.rpm which is a fix to a security problem is compiled with pam authentication. If you dont have a previous install of wu-ftpd ("drop-in" replacement) then the rpm does not include the pam module ftp in pam.d. The missing module prevents authenticated users from logging in but not anonymous users (unnnnnhhh?). Temporary solution: copy pam module ftp into pam.d (module from wu-ftpd works fine) and regular users can again login. Cannot verify if this problem exits in other hardware systems.
This is a known problem. You can get the proftpd which fixes this from ftp://rawhide.redhat.com/rawhide/powertools . The package there has an issue too, the /etc/proftpd.conf is an html file, and it souldn't be. The update for this should make it to rawhide sometime tonight (whenever the updates occur). What you can do is copy one of the configuration files located in /usr/doc/proftpd-1.2.0pre4/sample-configurations to /etc/proftpd.conf, that should solve the problem with the proftpd-1.2.0pre4-1 package. Hope this helps. Tim