If you want to chroot a sftp-user to the home dir, then you must do a “chmod 701 ..” while in the home dir.
Or else these two guides won’t do any good at all!!
http://www.serverubuntu.it/SFTP-chroot
http://www.cyberciti.biz/tips/vsftp-chroot-users-limit-to-only-their-home-directory.html
