First of all, make sure the daemon compiles and works as expected without S/Key support. Personally, I prefer to keep all of my new software under /usr/local and my log files in /usr/adm. So I applied the following patch before building the daemon
patch < locations.patch
build nx3
build install
If your old ftpd is in /usr/etc, you'll have to edit /etc/inetd.conf to point to the new one in /usr/local/etc
ftp stream tcp nowait root /usr/local/etc/tcpd /usr/local/etc/ftpd -a
(if you use TCP-Wrappers) or
ftp stream tcp nowait root /usr/local/etc/ftpd ftpd -a
(if you don't) and then
kill -HUP < PID# of inetd >
Now to add the S/Key support.
  1. I'll assume you already have S/Key set up in some fashion or other. Personally, I prefer the Bellcore S/Key package which can be found precompiled for NeXTStep. The main elements are Unfortunately, wu-ftpd relies on an "enhanced" version of the libskey.a library, from the Logdaemon 5.6 package. This does not compile straightforwardly for NeXT, so I've compile a QUAD-fat library for you. In fact, I made one (minor) improvement. My version conforms to the RFC 2289 OTP standard, which the original does not.
  2. Retrieve and unpack skey-support.tar.gz.
  3. Cd to the main wu-ftpd directory and apply the patch
    patch < skey-support.patch
    
    This will patch config.h and src/makefiles/Makefile.nx3 to compile in S/Key support.
  4. Put libskey.a and libtermios.a somewhere the linker can find them (eg, /usr/local/lib) and run ranlib on them
    ranlib libskey.a
    ranlib libtermios.a
    
    Put skey.h somewhere the compiler can find it (eg, /usr/local/include).
  5. Then do
    build nx3
    as usual.