DreamHost Enhanced Security
The “Enhanced Security” option is our best solution for this. Although not a proper “jail” it will lock out all users from accessing your user’s home directory. If you do not share data between your users, this should be enabled for all of your FTP/SSH users.
I wasn’t aware of this option, having created my users long ago. There seems to be little reason not to enable it. It’s easy to accidentally end up with folders in your home directory that are world writable.
