Creating a chrooted sftp on panther server is quit easy, once you’ve found the instructions.
The how-to on this page worked excellent for me.

I needed however a wroking test-editor, enabling users to edit their files on the server.
So I copied pico to the /Users/bin, but pico needs a proper term file to operate.
If you copy these files, pico works as expected:

<br /> cp /usr/share/terminfo/78/xterm-color /Users/usr/share/terminfo/78/xterm-color<br /> cp /usr/share/terminfo/76/vt100 /Users/usr/share/terminfo/76/vt100<br />

The virtual host directive in httpd.conf is very flexible. I adjusted the user’s webfolder to a new folder in their chrooted homedirectory and this works as expected, including php etc.

I should have done this earlier,The only thing to do now is educating my users to use sftp instead of ftp.