Here is one way to do it. However, I don't think that this is the
best way since you are not modifing the empeg itself. Only an
environment within it. I am trying to modify the empeg's
environment with a minimal set of files. See my other post
for that here

1) Download the Debian root image from
here

2) Transfer it with a version of emplode that transfers non-mp3 files. I
put it into Unattached items.

3) Figure out which file it now is. An easy way is:
Export the database
Tools->Export Database to CSV
Edit that file and search for debian-image_990822.tar
2474,"tune","9651112","debian-image_990822.tar","Unknown","","","","","","","","","","","",1,""
Start a calculator and multiply that result by 16 and then
convert it into hex. The windows calculator can with View->Scientific
9aa0

4) Extract that into a temporary directory
rwm
mkdir /drive0/tmp
cd /drive0/tmp
tar -xvzpf /drive0/fids/9aa0

5) Start the Debian environment
/drive0/tmp/usr/sbin/chroot /drive0/tmp

6) Optional: start up the loop-back interface
ifconfig lo 127.0.0.1 up

7) Make sure that dns can work. Correct the last line of /etc/resolv.conf
so that it points to a valid dns server.
vi /etc/resolv.conf
Test is out with
ping www.empeg.com

8) Make sure that ftp will allow connections. Comment out the last line
of hosts.deny to remove the PARANOID.
vi /etc/hosts.deny

9) Start/Restart the inet daemon. Normally, one would ps -ef | grep inetd
and kill -HUP the inetd's pid. However, ps traps now because there
is no /proc filesystem! Fortunately, inetd is not running and you can
just start it up.
inetd

10) Test it out!

11) To connect locally (with empeg's environment. Make sure to follow setp 6):
ftp 127.0.0.1

12) To connect within your LAN:
ftp 192.168.1.105

Now, for security reasons, you cannot login as root via ftp. Also, with your
current setup, every other id is disabled (the :*: after every name).
So, remove a * after an id that you want to use. This will make the password
empty. You can then change it by:
su
passwd

Sigh. However, I am having a problem with the groups (I think).
su bin
empeg:/$ su nobody
Password:
su: cannot set groups: Operation not permitted

I think this is why nobody cannot log in.