PSA9: Double check the actual VFS directory permissions. I.e. the rwxrwxrwx stuff. The master accounts ignore those permissions checks so it you have it set to drwxr-xr-x (755) which is a perfectly reasonable thing to do only the directory owner and master accounts can upload... 775 is common as well, but then double check the group situation if not owner.
In the VFS settings if you have also allowed directory creation does that work for non-master accounts? If a user can't upload into the just created directory which they will own then double check the actual Upload = line again. It's possible you got a non printing character or something in there so just try retyping it. I've seen that before and banged my head on the monitor for a while trying to debug it for someone...
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