As I suspected, there is no reason to blame ioFTPD
Actual reason for ghosting lies elsewhere...
Grab
this tool, and make sure that you have ONLY following items on the KEEP list: mswsock.dll, winrnr.dll, rsvpsp.dll. Everything else must/should go.
I spent 4hours to debug this, as I assumed that it's ioftpd's fault, and found out that mcafee is to blame (this problem may apply to other virus scanners, firewalls/network applications) I wonder how widely used commerical programs can be that dodgy... go sue them