Connection Problem! - PSSST Help

I noticed a few posts that look similar and this problem is also prevalent on the web... but I have yet to find a solution. So, here goes...

I am currently attempting to use Contribute CS3 in order to manage/edit web pages. The connection type I am using is FTP (I have tried letting Contribute configure my connection and I have also manually configured with Passive). I am able to get passed the initial FTP access test and I can connect to the server and see my files… but when the setup attempts to go through the final steps, connect to the root web folder of my choice, create a temp file on the server (apparently from what I have read, Contribute needs to create a temp file on the server) and run FTP diagnostics I get the error

“Contribute cannot verify your connection information.
/randomdomain.com/
Please contact your administrator for assistance”

I have made sure that
- I can hit my ftp site using dreamweaver and another ftp client (filezilla)
- I have checked permissions of the ftp user and I have full read/write permissions on the server

Help.

Thanks!