Jailkit and puppy 3.01

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I'm having trouble setting up a jail for shell users on an embedded system with puppy 3.01.

I need to have very restricted user access for people who log directly into the machine. Jailkit seemed like the way to go but it is not working as expected. Once I have a user and add them to the jail, when I login as this user it gives me root privileges. Have tried many things to get it working but it seems hopeless.

Does anyone know if jailkit will work for shell users on puppy 3.01?