I am wanting to setup an automatic FTP account creator for people that pay for FTP access.

After paying via paypal, I want them to fill out a form and their accounts be automatically created.

However, I only want them to be able to download files and nothing else.

Is there any way to do this with Cpanel? I have searched on google and hotscripts but I have yet to find anything that would be suitable.

Any help would be greatly appreciated.

You could write a short script to add a new ProFTPd user to a specific account. Look at /scripts/newftpuser for ideas.