centos - How do I restrict created users to a directory and disable SSH for VSFTPD

I've been googling for my answers for a good few hours and I can't seem to get a direct answer to my questions. I have found many tutorials but many are vague.

Anyways:

I've recently setup VSFTPD on my server. I'm running CentOS 6.4 (if that makes any difference). I have created the user 'test' using useradd and it can login successfully (with SSH and FTP) However this is what I'm looking to do:

Create users (with useradd) to use with VSFTPD and disable SSH for them. With these user(s) restrict them to their web directory (e.g. /var/www/domain/example.com) so they can login with FTP and upload, edit, delete and create directories with in the example.

For reference this is my configuration file:

anonymous_enable=NO

local_enable=YES

write_enable=YES

local_umask=022

dirmessage_enable=YES

xferlog_enable=YES

connect_from_port_20=YES

xferlog_std_format=YES

chroot_local_user=YES chroot_list_enable=YES

listen=YES

pam_service_name=vsftpd userlist_enable=YES tcp_wrappers=YES

Many thanks. Apologises if my explanation isn't descriptive enough. I'm not sure how to word it.