Im trying to build a ftp 'portal', too. Its nearly finshed, I`m only searching for way to set up a upload status window.
About your problem:
You have to use the enctype="multipart/form-data" in the form-tag.
For the 'action' - php script you now have the variables:
$userfile = path and name of the file in your temporary folder(that the 'encrypted')
$userfile_name = THE ORIGINAL FILENAME !
$userfile_size = the original filesize
$userfile_type = the mime format
userfile ist the name whitch is used in the input-tag:
<input type='file' name='userfile'....
With these variables you can easily copy the file:
copy ($userfile", "..test/$userfile_name");
or use an ftp-server:
$upload = ftp_put($server, "../test/$userfile_name", $userfile, FTP_BINARY);
(excuse my bad english 😉