In past I tried to setup FTP on Amazon EC2 I personally face some problem in FTP server installation. I found the documentation is very fragmented and definitely lacking some information.
So here is my contribution:
To setup FTP account on amazon EC2 we will use Pure-FTPd a free FTP server. It can be compiled and run on a variety of Unix-like computer operating systems including Linux, OpenBSD, NetBSD, FreeBSD, DragonFly BSD, Solaris, Tru64, Darwin, Irix and HP-UX. It has also been ported to Android.