[scponly] Chrooting scponly in Gentoo

[TSD Techs]

Hello,

I am confused as to how I am supposed to chroot my users into their home 
directories when using scponly.

I am using Gentoo and have tried using scponly 4.3 and 4.6. I am able to log 
in fine using non-chrooted scponly, but am having problems using chrooted 
scponly, I get the below error in /var/log/messages

Mar  8 11:03:34 www sshd[8796]: Accepted password for testuser from 
xx.xxx.xx.xx port 4564 ssh2
Mar  8 11:03:34 www sshd[8811]: subsystem request for sftp
Mar  8 11:03:34 www scponly[8812]: chroot dir not owned by 
root: /home/testuser

>From what I can tell I may need to setup a chroot jail and change permissions 
on the users home directory? I am a little confused by this. I have read 
through the building jails text file and it doesn't look like that is the 
cause of hte permission problem (although it may be the next problem once I 
get past this one). I have also tried running the setup_chroot.sh file and I 
get this output:

grep: config.h: No such file or directory

your scponly build is not configured for chrooted operation.
please reconfigure as follows, then rebuild and reinstall:

./configure --enable-chrooted-binary (... other options)

However the --enable-chrooted-binary option was run when I compiled scponly, 
and the binary exists and it does allow me to start logging in but kicks out 
the permission error.

I can't seem to find anything regarding how to deal with this permissions 
issue. Could someone please point me in the right direction?

Thanks!