The latter, except it's more like, "D'oh, I'm quite unaware of how that ftp client works." More of my linux newbieness showing through. :-)
It started working much better when I created that directory. Of course, it seemed to have a problem copying files above about 120Mb. (This one I figured out for myself) I then created a tmp dir in /drive0 and ln -s'ed it to /tmp. Now I'm able to copy larger files.
It still seems to crap out though, it's weird. It seems to unbind it's ip address during the transfer of a large amount of data (many files, or several large files). I have to get out of the shell and get back in to get it to work again. If I break it down to smaller chunks, it seems to work okay.
Thanks,
Chris