I'm new to Linux.

I am working with a Redhat 5.5 server and am using a Java-based SFTP script that will allow multiple users to upload text files to a server. I am undecided if each user will have a separate directory or if I will use a naming convention that includes their customer ID.

The files include some personal information about their LAN settings, so I prefer to use SFTP as apposed to FTP. It is my understanding that SFTP is encrypted (Also, I have a Java class configured to upload via SFTP, so I prefer not to switch protocols unless their is a very-good reason).

The prototype is for a system that will support large numbers of customers and the thought of continually adding and removing clients through the command line seems highly impractical. (Again, I am new_to/learning Linux and Redhat).

What are normal conventions for giving multiple users permission to SFTP upload files with a unique username and password for each.