proftpd DisplayFirstChdir problem

I'm having problems with showing a message when a user changes
directory. Any ideas on how to tackle this problem

# This is a basic ProFTPD configuration file

#General Server Context
ServerName "FTP server"
ServerType standalone
DefaultServer on
Port 21
MaxInstances 5
User nobody
Group nobody
DefaultRoot ~
RootLogin off
UseReverseDNS off
IdentLookups off
AccessDenyMsg "Acces for %u has been denied"
AccessGrantMsg "Acces has been granted for %u."
DeferWelcome on
MultilineRFC2228 on
DenyFilter \*.*/

#Global server context
<Global>
Umask 022
MaxLoginAttempts 3
ServerIdent on "Welcome to ftp at JAQAR"
DefaultTransferMode binary
DisplayFirstChdir /usr/local/etc/welcome
</Global>

# Normally, we want files to be overwriteable.
<Directory />
AllowOverwrite on
DenyAll
</Directory>

<Directory /home/testftp>
AllowAll
</Directory>

The welcome file looks like this:

you are currently connected as user: %U
You are connected from: %R
The current time is: %T
You are in directory: %C

This welcome file has the following permissions and is owned by root:

-rw-r--r-- 1 root root 169 Sep 17 15:19 welcome

regards, Sam