Yes, that was what I was referring to, though I don't think that is the source of your problem - I only mentioned it because is can make things hard later on if interacting with subdirectories in the shell.
Well, that makes at least two of us. Note that the "FTP" link uses your browser rather than an FTP client, and if you have a problem with your password, you will get permission related errors. Have you tried the "WebFTP" link from within the "domain control panel"?
If you you don't know what it is, it is most certainly not causing your problem, as it would take some action on your part to enable it for a directory. If you are curious, you can learn more about WebDAV here. I only mentioned it because if you had enabled it, it would make your directories inaccessible via FTP, and I was trying to help you troubleshoot.