Core FTP

Ah, I'm looking for setting up a login and password to be abled to log into a certin folder and be able to do anything in that folder+ What kind of utility would I need? I have no idea how to create an account for a new user to my hosting, is this done at the web hosters website? I use godaddy just ...

ok, lets say I want to allow my friends access to one of the folders on my online web hosting. How would I do this? [/end ftp newb]