I haven't used vsftpd yet but...
the settings in the vsftpd.conf file should be like:
option=value
It is important to note that it is an error to put any space between the option, = and value.
also from the vsftpd MAN page:
An optional [configuration file] may be given on the command line. This configuration files has to be owned by root. The default configuration file is
/etc/vsftpd/vsftpd.conf.
are you sure you gave the configuration file while starting vsftpd?
Finally you should give the site
http://www.vsftpdrocks.org a try.. It holds you hand through the whole process.
I hope that helps.