FTP and OUTLOOK problem

We are attempting to configure the domain. We are experiencing the following problems:</o>
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1) Although we have followed the Outlook Client settings exactly, we are getting error messages from Outlook saying:</o>
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Task 'pop3.domain.com - Sending' reported error (0x80042109) : 'Outlook is unable to connect to your outgoing (SMTP) e-mail server. If you continue to receive this message, contact your server administrator or Internet service provider (ISP).'</o>
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We also get refused access to our POP3 with a similar error message.
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2) We are uncertain how to set up our FTP users. AS all subdirectories inherit from the parents, we wish to deny access to the root folder - as this is where the web site docs reside - and allow read/write access to child folders. When we deny permissions for a user on the root folder, the permissions manager does not allow us to grant new permissions to child folders for that user. </o>
We are also surprised to see that a user does not have a home folder where he is automatically directed on ftp login.

Thank you</o>