Profile path is for Roaming profiles. Local path is the path the client will default to whenever it attempts to save a document or when you run either COMMAND.COM or CMD.EXE to get a command prompt.
Logon Scripts are used for when users log onto a domain or the local computer, an administrator can have a script that maps drives or LPT ports or adds entries to the registry or reads entries in the registry, etc. The only area you need to worry about is the HOME PATH. That will specify what folder the FTP User will log into and also browse.
Again, if you have any further questions, let me know.