What is the best way to make a limited account on Ubuntu Linux.
The user should only be able to read and write to the home directory.
Give them a restricted shell, e.g.
If you only want the users to be able to copy files over SSH (with rsync, CVS and so on), not run applications, then make their shell rssh.
This is doable but not very practical. You can put them in a chroot jail of their home directory but then you need to have copies of /bin and /usr/bin in their home directories.
I am with spectre256, better to keep them out of where you don't want them.