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I want users to be able to upload files via FTP to my site (IIS 7.5). Once the file is uploaded, then I want to process the file. Is there some guide that steps through how to setup FTP to point to a specific location where I want the files to be dropped? Can I setup FTP to point to a different subfolder based on the user that logs in?

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You're probably looking to set up FTP user isolation. Here's a guide:

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