SFTP

I am using mac server 10.3.9 I have enabled remote login to access sftp and I can connect from a client mac using the program Fugu. By default it is very easy to change to another directory (even if it is just to read). However I really need to limit the user to a home folder and its contents. I can't work out how to do this using server 10.3.9 with any program or command (chroot comes to mind). Can anyone assist? Thanks.