FTP Uploading/Restricting

Hi, I've created some new FTP users via the 'Manage Users' panel, and i just tested them logging in using a FTP program called Cute FTP.

I was just wondering if someone can tell me where abouts they actually uploaded to, like the directory cause I've looked and i have no idea. http:// ... what?

and also how do i restrict them to an area i just want to give them there own folder that they can upload to, so if someone can explain this to me in the simplest n00b terms would gladly appreciate.

A domain, http://www.YOURDOMAIN.com, can only have one owner (FTP user). Here's a basic layout of the directories:
/home/YOURNAME/DOMAIN.com
/home/SOMEOTHERUSER
/home/ANOTHERUSER

Those other users don't have websites associated with them unless you create subdomains owned by them, in which case, they'll have directories called SUB1.DOMAIN.com and SUB2.DOMAIN.com

In your case, you have two choices: either create a new subdomain for each user, as in the above example, or use the remap subdirectories option:
http://wiki.dreamhost.com/index.php/KB_/_Account_Control_Panel_/_Domains_::_Remap_Sub-Dir

In either case, it's difficult to fully share a directory between two users, which is why both of the above examples give your new users their own place to put files.

-Scott