I ran into this problem a while back and as I recall there are two modes of operation for FTP--active and passive. If you start poking around in some of the lower-level VIs in the FTP drivers you'll see inputs for selecting the mode. However this mode switch was not exposed to the higher-level FTP code that NI shipped.
I do remember that to get the FTP drivers to work I had to use the other mode from the one that was selected by default. I remember that I was getting the same error message you gave.
Mike...
PS: Just looked at your code and you can see the "active (T)" input on the Send VI. Try wiring a False constant to it. Also connect the error cluster between the FTP Open Session VI and the Logon VI.