Tthe FTP service uses RFC 931 for user identification, which isn’t supported in Mac OS X (why we’ll move on to other FTP servers in the future). To resolve, add the -I option in the xinetd configuration as you see here:
service ftp
{
disable = no
instances = 100
socket_type = stream
wait = no
user = root
server = /usr/libexec/xftpd
server_args = -aI
groups = yes
}