locking down sftp directory

I just installed and configured Cygwin SSH on a Windows2003 DC. We want
to have external clients be able to sftp into this server and be able
to upload and download files from a single particular directory. But
when I test this functionality I can connect to the server and am
dumped into the correct dirctory but I can then uplevel to the cygwin
root directory and have access to everything there. I have searched
quite a bit for a solution and have found nothing, except for
references to chroot which apparently can only be configured on a pure
unix machine. It is puzzleing to me that more businesses would not need
this functionality, and what is the point of secure ftp if you cannot
lock your users into there home directory. Does anyone know of a better
free solution?
My passwd file looks like this:

sally:unused_by_nt/2000/xp:11118:10513:sally,U-DSDNET\sally,S-1-5-21-838629778-670936772-3974172153-1118:
/data:/usr/sbin/sftp-server

Thanks.

.

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