With regards to creating an FTP publishing site in IIS7, I was initially confused by the term “virtual host names”. My intuitive but incorrect assumption was that the FTP server would be able to look at the host name used to contact the server, and redirect the authorized user accordingly.
The Virtual Host Name is not at all similar to the website’s Host Header Name. Instead of acting on the FTP host, it acts on the FTP user.
Supposing a Virtual Host Name of myvirtualhost.com and a user, ftpuser, FTP access would be as follows:
Host: ftp.mydomain.com Port: 21 User: ftpuser|myvirtualhost.com Pass: ...
So modify your usernames, not your ftp host!