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Below is reference of how I have setup chroot SSH jail for users in CentOS-4.6 with ISPConfig installed replacing the openssh rpm with the one from chrootssh.sourceforge.net .

It's easy on ISPConfig as support for chroot SSH is now built in with the control panel, you simply need to get chrootSSH installed and then enable the ssh option located in the config file at "/home/admispconfig/ispconfig/lib/config.inc.php":

If you need for the ssh chroot to access additional application, the file "/root/ispconfig/scripts/shell/create_chroot_env.sh" which builds the chroot needs to be edited. Also, check and edit the location of mysql socket file.

1. Install latest zlib:

   chrootSSH will complain when we try to compile if the latest version of zlib is not installed.

   wget http://www.zlib.net/zlib-1.2.3.tar.gz
tar xvfz zlib-1.2.3.tar.gz
cd zlib-1.2.3
make clean
./configure --shared
make
make install

2. Install chrootSSH:
   wget http://chrootssh.sourceforge.net/download/openssh-4.5p1-chroot.tar.bz2
tar jxvf openssh-4.5p1-chroot.tar.bz2r />vi openssh-4.5p1-chroot/contrib/redhat/openssh.spec

   Change %define no_x11_askpass 0 to a 1, as well as %define no_gnome_askpass 0 to 1.

   Clean up some of the extra directories:

   rm -rf openssh-4.5p1-chroot/contrib/aix/
rm -rf openssh-4.5p1-chroot/contrib/hpux/
rm -rf openssh-4.5p1-chroot/contrib/caldera/
rm -rf openssh-4.5p1-chroot/contrib/suse/
rm -rf openssh-4.5p1-chroot/contrib/cygwin/
rm -rf openssh-4.5p1-chroot/contrib/solaris/

   Install openssl-devel and pam-devel packages. Then rename the folder, and compile it with rpmbuild.

   yum -y install openssl-devel pam-devel
mv openssh-4.5p1-chroot openssh-4.5p1
tar czvf openssh-4.5p1.tar.gz openssh-4.5p1
rpmbuild -tb --clean openssh-4.5p1.tar.gz
rpm -Uvh /usr/src/redhat/RPMS/i386/openssh-4.5p1-1.i386.rpm
rpm -Uvh /usr/src/redhat/RPMS/i386/openssh-server-4.5p1-1.i386.rpm />rpm -Uvh /usr/src/redhat/RPMS/i386/openssh-clients-4.5p1-1.i386.rpm

3. Edit /etc/yum.conf and add “exclude=openssh*” so that it will not try and update openssh.
   
4. Create The Chroot Environment:

   NOTE: This step is not necessary on ISPConfig, as it is now built in into the control panel. Simply edit the config file located at "/home/admispconfig/ispconfig/lib/config.inc.php" and enable ssh chroot option:

   $go_info["server"]["ssh_chroot"] = 1;

   The chroot environment can be created via running the script that comes with ispconfig:

   /root/ispconfig/scripts/shell/create_chroot_env.sh <username>

   If you need for the ssh chroot to access additional application, the file "/root/ispconfig/scripts/shell/create_chroot_env.sh" which builds the chroot needs to be edited. Also, check and edit the location of mysql socket file.

   The script is as below:

   #!/bin/bash

#
# Usage: ./create_chroot_env username
#

# Here specify the apps you want into the environment
APPS="/bin/sh /bin/bash /bin/cp /bin/ls /bin/mkdir /bin/mv /bin/pwd /bin/rm /bin/rmdir /usr/bin/id /usr/bin/ssh /bin/ping /usr/bin/dircolors /bin/vi /usr/bin/sftp /usr/libexec/openssh/sftp-server /usr/bin/mysqldump /usr/bin/mysql /usr/bin/unzip /usr/bin/zip /bin/tar /bin/gzip /bin/gunzip /usr/bin/wget /usr/bin/svn"

# Sanity check

if [ "$1" = "" ] ; then
        echo "    Usage: ./create_chroot_env username"
        exit
fi

# Obtain username and HomeDir
CHROOT_USERNAME=$1
HOMEDIR=`grep /etc/passwd -e "^$CHROOT_USERNAME"  | cut -d':' -f 6`
cd $HOMEDIR

# Create Directories no one will do it for you
mkdir -p usr/lib/openssh
mkdir etc
mkdir etc/pam.d/
mkdir bin
mkdir lib
mkdir usr/bin
mkdir dev
mknod dev/null c 1 3
mknod dev/zero c 1 5
chmod 666 dev/null
chmod 666 dev/zero
# Create short version to /usr/bin/groups
# On some system it requires /bin/sh, which is generally unnessesary in a chroot cage

echo "#!/bin/bash" > usr/bin/groups
echo "id -Gn" >> usr/bin/groups

# Add some users to ./etc/paswd

grep /etc/passwd -e "^root" -e "^$CHROOT_USERNAME" > etc/passwd
grep /etc/group -e "^root" -e "^$CHROOT_USERNAME" > etc/group

if [ -x ${HOMEDIR}/ldlist ]; then
  mv ${HOMEDIR}/ldlist ${HOMEDIR}/ldlist.bak
fi

if [ -x ${HOMEDIR}/lddlist2 ]; then
  mv ${HOMEDIR}/lddlist2 ${HOMEDIR}/lddlist2.bak
fi

for app in $APPS;  do
  # First of all, check that this application exists
  if [ -x $app ]; then
    # Check that the directory exists; create it if not.
    app_path=`echo $app | sed -e 's#\(.\+\)/[^/]\+#\1#9;`
    if ! [ -d .$app_path ]; then
      mkdir -p .$app_path
    fi

    # If the files in the chroot are on the same file system as the
    # original files you should be able to use hard links instead of
    # copying the files, too. Symbolic links cannot be used, because the
    # original files are outside the chroot.
    cp -p $app .$app
    # get list of necessary libraries
    ldd $app >> ${HOMEDIR}/ldlist
  fi
done

# Clear out any old temporary file before we start
if [ -e ${HOMEDIR}/ldlist2 ]; then
  rm ${HOMEDIR}/ldlist2
fi
for libs in `cat ${HOMEDIR}/ldlist`; do
  frst_char="`echo $libs | cut -c1`"
  if [ "$frst_char" = "/" ]; then
    echo "$libs" >> ${HOMEDIR}/ldlist2
  fi
done

for lib in `cat ${HOMEDIR}/ldlist2`; do
  mkdir -p .`dirname $lib` > /dev/null 2>&1
  # If the files in the chroot are on the same file system as the original
  # files you should be able to use hard links instead of copying the files,
  # too. Symbolic links cannot be used, because the original files are
  # outside the chroot.
  cp $lib .$lib
done

#
# Now, cleanup the 2 files we created for the library list
#
/bin/rm -f ${HOMEDIR}/ldlist
/bin/rm -f ${HOMEDIR}/ldlist2

# From some strange reason these 3 libraries are not in the ldd output, but without them
# some stuff will not work, like usr/bin/groups
cp /lib/libnss_compat.so.2 /lib/libnsl.so.1 /lib/libnss_files.so.2 /lib/ld-linux.so.2 /lib/libcap.so.1 /lib/libnss_dns.so.2 ./lib/
cp /etc/hosts etc/
cp /etc/resolv.conf etc/
cp /etc/pam.d/* etc/pam.d/
cp -r /lib/security lib/
cp -r /etc/security etc/
cp /etc/login.defs etc/
cp /usr/lib/libgssapi_krb5.so.2 usr/lib/
cp /usr/lib/libkrb5.so.3 usr/lib/
cp /usr/lib/libk5crypto.so.3 usr/lib/
cp /lib/libcom_err.so.2 lib/
cp /usr/lib/libkrb5support.so.0 usr/lib/

# mysql needs the socket in the chrooted environment
mkdir -p ${HOMEDIR}/var/lib/mysql
ln /var/lib/mysql/mysql.sock ${HOMEDIR}/var/lib/mysql/mysql.sock

5. Create chrooted user:

   The chrootSSH looks up the user who is trying to login in /etc/passwd. If the user's home directory in "/etc/passwd" has a . in it, then the user will be chrooted.

   webx_user:x:10000:10000:Name:/var/www/webx/./:/bin/bash

   The process of creating such users is automated via the ISPConfig control panel when enabling ssh option for users.