I Finally Got the FTP Service Working
OS X Server's FTP service is finally working after a week of tinkering. I found the answer deep in Apple's OS X Server discussion board. It looks like the problem is that the users that are created aren't a part of any class in the 10.4.1 version.
The solution to the issue is to edit the file in /Library/FTPServer/Configurations/ named ftpaccess. In this file you will find the settings that you have entered in the GUI manager for the FTP service. At the end of the file you will need to enter, exactly this: class all real *
That seems to have done the trick. Now keep in mind that users who are administrators can not log in using FTP, this is for security reasons and you probably want to maintain this convention. So, make an ftp user who does not have access to anything except for their home folder and the folder you want to access, for example /Library/WebServer/Documents/. That will get you the ability to edit the files in the default web directory. Many thanks to the guys on the Apple message board!