Bug in contribute with Windows FTP

I have Windows FTP server 2003 with WIndows FTP. I tried COntribute 3, but the problem is that after I edit and publish file it says Ican not edit it any more as it is used. But the LCK file IS SUCESSFULLY deleted.

After few hours of digging into, I found out it gives this error on test connect:

***

Change Permission test: The ChMod test did not run because ChMod is not implemente non this FTP server.
----------------------- FTP log from the last operation ----------------------
> CWD /httpdocs/mm_diagnose_72ats
< 250 CWD command successful.
> SITE CHMOD 755 rename_test3_parent_.htm
< 500 'SITE CHMOD 755 rename_test3_parent_.htm': command not understood
---------------------------------------------------------------------- --------
Cleaning Test File: The server is unable to delete a file. Some anonymous account users have restricted use of the Delete operation. Check with your server administrator to ensure that you are authorized to delete files. Due to this failure, Contribute could not clean up the test folder "mm_diagnose".
----------------------- FTP log from the last operation ----------------------
> CWD /httpdocs/mm_diagnose_72ats
< 250 CWD command successful.
> DELE upload_test1_reg_.htm
< 550 upload_test1_reg_.htm: The system cannot find the file specified.
--------------------------------------------------------------------- ---------
Cleaning Test File: SUCCESS!
Cleaning Test Directory: SUCCESS!
Cleaning Test Directory: SUCCESS!
Summary: The server is compatible with Contribute 3.0 using the options selected.

***

As you can see Contribute is mistaken that delete doesn't work, but it does. It did delete the test files. Same thing happens with LCK files I guess. COntribute deletes them but thinks that it didn't delete them so editing is blocked until I exit and enter the program again. So I can edit page only ONCE :-(((

This is clearly a bug in COntribute 3.1 or am I missing something?

Jerry