After several interchanges, the Coffee Cup customer care staff(specifically Orlando Perez) assisted me in resolving my upload issue while using my Vista Sp1 laptop. We found that it was my firewall settings that were too high and when I reduced these to a lower level all FTP uploads from each coffee cup program to any of the the 4 hosting sites I use work without hitch. I am able to reproduce this error by increasing the firewall protection level.
My advice is when troubleshooting issues whether it be a computer or an automobile or any other device one needs to move from general to the specific very systematically much like a scientist. The clues to my problem were not all Vista users of VSD were having upload issues, and internal FTP capabilities in other coffee cup software hung up and that I had recently added SP! to Vista and lastly because I had been traveling had set the firewall to a higher than usual level. The customer care staff helped me to methodically work my way to a solution and an aha moment.
Lastly while it is very easy to blame software releases, people, hosts, operating systems etc getting upset and anxious rarely solves the problem, however enlisting others help in a gracious and patient manner will in most cases result in an acceptable solution. Lastly, I have found these forums to be very helpful and the Coffee Cup customer care staff priceless when it comes to these issues. Thanks to Scott and all of the people at Coffee Cup my experience web site developing are a bit easier.

I completely agree. I had some issues with uploading running WinXP SP2, but it turned out that the newest version of VSD was created to help those that transport their files from one computer to another - my files were 'scattered' on my computer, but once I moved them under one main folder (where VSD saves my sites), I have had no problems at all since then.

My hubby's upload issues were a bit more complicated - after his computer crashed and he used his factory-supplied restore disk and reinstalled everything (including downloading all the multitudes of updates for Windows including SP3) he couldn't get his site in VSD to upload at all - after several email exchanges with Scott (supplying even minor details) and trying everything under the sun, we created a logmein account and got to watch one of the developers work their magic on my hubby's computer. His restore function for some reason changed his Windows to Windows1, so when the software was installed, it didn't put the dll files in the right directory (NOT the fault of the software, just a result of the quirk from my hubby's restore).

So that goes to show that any funky thing can be figured out, and like cayucostom said, it is easy to blame software releases, people, hosts, operating systems etc., getting upset and anxious rarely solves the problem. I have always been happy with the response time from everyone at CC, and the best thing is to make sure you give them even the smallest detail so they can help figure out what is causing the issue to begin with – it may seem like a mundane or unimportant detail, but generally that is not the case. And remember – 'Please' and 'Thank You' go a LONG way!

Awesome. Thanks for taking the time to give details on what helped in your case. Hopefully this will apply to some others sharing upload issues.

Moving all files into one folder, and completely turning my firewall (Zonealarm) off, did not prevent my site from corrupting and did not solve the upload problems.