Ftp – Enable FTP Publishing on IIS7

This seems to be a problem similar to Fault when setting up FTP server under XP

When it works with active FTP, it most assuredly is, otherwise just check whether you can enable the raw commands that will show you the PORT command sent by the server.

Double check that newFTP has read/write access to the ftp root folder (NTFS permissions on disk). Additionally, a couple of the user isolation modes require that the user also be granted 'list permissions' access to the root of the site.

There is a minor bug that may catch you with the authorization too. Just for testing, open that wide open. Once you get it working then lock it down again.