VSFTP not reading config???

I need to have this site working to get support for something else but don't want to leave it wide open for them. (my logging isn't even working!)

It seems like VSFTP is not reading the config file. I'm trying to set chroot_local_user=YES but can't get it to work. (I've tested and still have access to things outside the home directory.) I've tried restarting the service (which is standalone i believe) and even the system itself. Could there be a permission problem with the config file? I've also created a sym link in /etc in case the file was expected to be there.

Any help is appreciated