We're trying to tighten permissions a bit in our tree, and I've run into a
wall with NWFTPD. The server and user objects are in different contexts.
The server is now getting a "No Home Directory Found" error when a utility
user logs in.

Pretty clearly this means that nwftp can't read the HOME DIRECTORY
attribute or is unable to resolve where that points. I'm not sure which.
What object does NWFTPD gain rights to browse & read the tree? The server
object? Context/OU?

Novell, it does a network good