that thing about "write permission for everyone has to be on" is only for web access on unix computers me thinks, so that the USER apache can access YOUR files..
i just tried the ftp thing and it works without problems for me
your problem may be the directories if you have a homedir named like /users/username/ because you are trying to write to the root of the system when you try to access "site.com/wordup.txt"
use the ftp_pwd command to see if you really are where you should be
oz