Our company is a reseller for Hostopia, and (i know it's crazy) the default permissions of their public folders is what I posted above. We really cant change the permissions on the 1000 websites we have hosted with them, they obviously set those permissions for a reason.

Now, even with these strange permissions (06770), the public folder shows up and works with every ftp program i've tried except for phpEd. I have tested fetch (on mac) ws_ftp, and even internet explorer using the ftp://username:password@hostname/ syntax. They all display the folder with "strange" permissions with no problem.

Looking forward to your response, and thanks again for your help! Let me know if you want me to try any other permissions settings!

Problem is fixed in phped 3.3.
Evaluation version is available from the link below
http://www.nusphere.com/eval/

If you have no eval. account, create one using the form:
http://www.nusphere.com/web/

Beautiful. THe responsiveness to fixing this FTP bug iwas absolutely incredible!!