How to Setup FTP to use in locally hosted wordpress
Well your Wordpress login and your FTP login are two different things. I have see that you use vsFTPd, so one easy thing that you can do it this :
Edit the vsFTPd configuration file :
gksu gedit /etc/vsftpd.conf
Add this at the end :
local_enable=YES
Restart your vsFTPd server :
sudo /etc/init.d/vsftpd restart
Now you should be able to connect to your FTP using your Ubuntu login.
For me changing the ownership of the wordpress folder solved the issue.
sudo chown -R www-data wordpress
Just add this line to wp-config.php
define('FS_METHOD', 'direct');
Then It will be OK.