Creating virtual users for sftp/ubuntu

hey guys, its been a while..

Just need a bit of help in a few things setting up my new box for a dedicated sftp/web server. I've already installed apache2 and got that running, and also installed openssh on a ubuntu 9.04 system. Now, a few questions if anyone can help..

1) how do I create virtual users on an ubuntu system and integrate them to log into sftp?
2) how do I change the default path after those users have logged in to a particular path, say instead of "/home/$user" to "/var/www/" instead

I want to have a few users (or group if possible) to be able to access the var/www/ folder only since all they will be doing is just uploading/modifying/downloading files in that directory. The server will be mainly hosting files for download (with anonymous access given to download via a html link) and the uploading/etc to be done over sftp since its more secure than regular ftp connections.

I have looked around the net for a while now, and they don't give me a clear answer to this (probably since this is my first time setting up openssh, and i've only started to work in ubuntu regularly only quite recently) and other sites telling me to install vsftpd, proftpd etc.. which I prefer not to.

Thanks in advance.

Edit: I'm looking at two options - LDAP and PAM for the users.. any suggestions?

Edit2: Never mind, got a friend to show me how to do this on the *nix.