KB Article: http://support.microsoft.com/kb/941896

INTRODUCTION

In Windows Internet Explorer 7, you may experience the following issues after you enter the user name and password to access an FTP site:

• You cannot log on to the FTP site. Or, no content appears in Internet Explorer 7.
• You can log on to the FTP site. However, you are redirected to the root folder of the FTP site.

Note In Windows Internet Explorer 6, you are redirected to an assigned virtual folder according to the username that you use.