I had the same trouble, suddenly no ftp using DreamWeaver or any other ftp client.
The only changes I'd made to my system was updating XP to use the new 'Windows Installer 3.1 (KB893803).
I disabled the XP firewall and all is well again... except I'm open to attack...
What (free) firewall should I use? I would prefer to fix the XP firewall problem as it's less intrusive I feel.
Regards,
Brother Payne