Clubman - thanks for the reply. Secure FTP at the moment doesn't seem to fit the bill since it runs over SSH (as does SCP) as far as I can tell and this leaves me with the same ring-fencing (or chroot'ing) problem.
The main problem is that if a user looks for a directory listing of / they will get it. If they look for a directory listinng of /home they will get it. I am working through this at the moment, but not there yet. The web has turned up the concept of using /home/./username (where /./ is a marker to the SSH server) as the users home directory, but it doesn't work in this particular instance.
Cheers,
z