Howtoforge published a chrooted SSH/SFTP tutorial for Debian GNU/Linux 4.0

This tutorial describes two ways how to give users chrooted SSH access. With this setup, you can give your users shell access without having to fear that they can see your whole system. Your users will be jailed in a specific directory which they will not be able to break out of. The users will also be able to use SFTP in their chroot jails.

Chrooted SSH/SFTP Tutorial (Debian Etch)