Installation guide here: http://kusabax.org/wiki/Installation Guide
I had a quick look at the source for KusabaX and see no mention of net2ftp.
Did you download the installation from Sourceforge?
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Yeah, downloaded it from sourceforge.It doesn't say anything about net2ftp, and I don't know why it's coming up with that message when I go to install kusaba.Tried a support ticket and looking it up myself, but can't find anything.
Just as a test (if you have the time), try creating a new user, fully host a free something.dreamhosters.com sub-domain, and install KusabaX under that user. If you get the same message it could indicate a server problem, if not then it would indicate a user account problem.