Evening Abhishek,
> I am having a VPS(Server) with Redhat 9.0 as the distro for website hosting
> with webmin as the control panel. Currently i create a account through
> Virtualmin Server inside Server tab of Webmin. This creates a new user with
> some password. The new user can login to his account via ssh but he has most
> of the preveliges and can roam to any directory.what i want is:
> 1)He is restricted to his default directory.
<snip>
Configure his shell to restricted shell ( rbash ).
> 2)He has no ssh access and can transfer files through ftp server.
<snip>
Update /etc/ssh/sshd_config for folowing:
AllowUsers      root user1 user2

#Above will restrict ssh & scp access to limited users as specified above.

> 
> I also wanted to know that mine vps gives me only 64 MB of RAM will this be
> sufficient to host a ftp server.
<snip>
Yes.

> Also please suggest a good ftp server to me which will consume least
> resources.
<snip>
vsftpd.
> 
> Also i wanted to host BIND will this consume resources in plenty. Also i
<snip>
Yes being part of the same server bind service will share the resources too.
> have just 1 IP , how ,many ips are required to host bind so that i can host
<snip>
Yes it works with one IP.
> sites with mine nameservers instead of using third party nameservers.
<snip>
Great idea to lower down DNS queries from your server for specific
domians, hosted on server, but poor idea if external world queries
your DNS for listed domain. ( In case of high traffic on DNS, you
might end up in very poor performance on Network.

Ideal will be to use caching DNS locally and to keep the DNS listing
outside. Saves your queries in both the conditions.
Reagrds,
Animesh.

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