I hope this helps.
Also, why are you using war-ftp daemon? (someone likes tucows :) ).
IIS 4 already has an ftp server built in.
>Recently (as of the past couple of days) people have been reporting that
>they are unable to overwrite existing files that are on the server. Their
>FTP clients are giving them access denied messages. When we looked at the
>files via Explorer (logged in as Admin on the NT Server) we were unable to
>open, rename, copy, move or delete the files. Each one gave an Access=
>error message. What's more, Disk Administrator showed no files as being
>locked or in use and Event Viewer showed nothing strange.
Did your files at least show a 0 byte size?