FTP 550 errors and WIN2K Advanced Server

My problem sounds like a permissions issue but I've tried just about everything I know and can't figure this out yet.

I have full access to our WIN2K Advanced server and I'm developing a php application with that allows users to upload images to a specified directory.

The uploading is working fine. My problem is with ftp.
Through an FTP client I can see that the images have been uploaded properly but if I try to FTP an uploaded image back to my local workstation, I get a 550 error - "the system cannot find the file specified". However, from the server, I can see the images and they look fine.

I also noticed that the images can't be viewed even via HTML img tag.

I checked the permissions to the upload dir and any parent / children dirs and can see that "everyone" has at least read, write and dir browsing access. I don't have this issue anywhere else.

Am I missing something?

Thanks
Coach