sftp + chrooting users

[Stefan Miklosovic]

hi all,

I am about chrooting ftp users into theirs home
directories. I've following in the end of /etc/ssh/sshd_config

Subsystem      sftp   internal-sftp

Match group ftp
         ChrootDirectory /home
         X11Forwarding no
         AllowTcpForwarding no
         ForceCommand internal-sftp

Now, problem I am facing:
if I connect like user at hostname (user is in ftp group)
and do "ls", it shows all content of /home dir which
is not wanted. I want to chroot user to /home/user.

But, as in manual, if you are going to do that, chrooted dir must be owned
by root and not writable by anyone.

This is impossible to do then.

In sshd_config(5), there is ChrootDirectory keyword, and
there are %u (user name) and %h (home dir) which would work,
but they do not.

Using of ChrootDirectory /home/%u does not work (because of privileges
issue).

it is also an option to chmod 700 for home dirs, but is there some other
way?