vsftpd: 530 Login incorrect
Back up the config file before making a change;
sudo cp /etc/vsftpd.conf /etc/vsftpd.conf.back
and then edit vsftpd.conf (with vi or nano)
nano /etc/vsftpd.conf
Then make the following change
pam_service_name=ftp
Save your change and restart the ftp server (if you use nano hit CTRL+O & enter to save then CTRL+X to exit)
sudo service vsftpd restart
Source: VSFTPD configuration problems with 12.04
By default vsFTPd uses the file /etc/pam.d/vsftpd
.
This file by default requires FTP users to have a shell listed in /etc/shells
and requires them not to be listed in /etc/ftpusers
.
If you check those 2 things your probably find what the problem is.
I did not need to change the vsftpd.conf. Only needed to make sure that a shell was set in my /etc/passwd file, that also was lited in /etc/shells.
So basically after useradd without a shell I needed to make sure the home directory was created and that the user had /bin/bash as it's shell.