Please make sure you have the latest Run-Time Components for Visual C++ Applications. (MFC42.DLL, MSVCP60.DLL ...)
You can download these files from the Microsoft site (search for Q259403)
Uninstall your firewall and see if this solves the problem.
Some older firewalls are known to be incompatible with the FTP server. Please upgrade to the latest release of your firewall software.
If this doesn't solve the problem, then please send me your log file (ftptrace.txt) so I can analyse the problem.
Make sure you set the loglevel to 'trace'.