Little problem with users

Hi … i recently made a fresh install of red hat linux 9, and it comes bundled with vsftpd (I’m new to Linux, so i don’t know the version) … i’ve configured everything, so it runs with xinetd. Now, i have a little problem: the server is up and running, but it is not recognizing users; here’s the log of my ftp client:

[R] Connecting to -> IP= PORT=9898
[R] Connected to
[R] 220 “Bienvenido al ftp ServidorLinux.”
[R] USER unreal4u
[R] 331 Please specify the password.
[R] PASS (hidden)
[R] 530 Login incorrect.

i also attached the vsftpd.conf file (renamed as vsftpd.txt)

Please help me!! testing php is a hell of a job transferring everything via SSH… Thanks!!