FTP Error 530, User cannot log in, home directory inaccessible
I just hit this issue and for anyone googling the error would like to add the solution that worked on Windows Server 2012 IIS 8.0. It was very simple in the end you have to create a
LocalUser folder in the FTP root you specified when creating the FTP site. Then create your username folders under this folder.
It is the user isolation setting.
You will need change it to "do not isolate users, start users in "user name directory" "
It's not clear to me from reading your post and the link you provided as to whether or not you're using user isolation. My suggestion would be to determine whether or not you want to use user isolation or not and then start from scratch.
Here's a link that may help: