I have been looking into plesk and looking at the the reseller functions. I see how to login as an admin and create a user account (lets say user JAMES). After I add JAMES I login to see how he can add users. This is where I get a little lost. I see he can add domains but I dont see how he can lets say, setup another account under him so they can login and add sites, etc.

What am I missing?

The levels are: Admin -> Client -> Domain -> Mail User

The Client is like a reseller. Clients can not add other clients, only domains.

Is this what you mean?

How do you setup additional clients so you can resell from a plesk account? Like how Direct admin and cPanel allows you to.

How-to: Adding and managing clients in Plesk with your Reseller Package.

1) Login to Plesk.

2) Click add new domain.

3) For the domain template, use default (Unless you have created your own).

4) Click on OK to add the domain.

5) Select 'Physical Hosting' and click OK.

6) Fill in the appropriate fields with the clients information, and then click OK.

7) Click on 'Domain Administration'.

8) Select 'Allow domain administrator's access'.

9) Enter a password for the user to login to Plesk with.

10) Click on the Permissions you wish to give to this user.
I recommend you do NOT check the following options:
'Hard disk quota assignment'

After you are done editing the page, click OK.

11) You're finished! The client can now login to Plesk and FTP!
Plesk: https://yourdomain.com:8443
USER: domain.com (Domain that they were setup with in Domain Administration)
FTP: ftp.yourdomain.com

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There's no way for clients to add clients, you've got to do it this way if you don't have the Plesk reseller (I believe it's called Plesk Expand) plugin.

How do you setup additional clients so you can resell from a plesk account? Like how Direct admin and cPanel allows you to.

These should help too: http://www.nexusportal.net/support/flash-tutorials/plesk.html