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I use Cyber Duck and have no problem with ftp upload or permission problems, It´s a program I´d recommend. Just upload the index.html again, and your problem is probably fixed. hope this helps http://cyberduck.ch/

While trying to get file sharing between other macs working I made the mistake of removing the administrator account from the boot HD in the file sharing preference panel. I believe that this is the cause as a couple of Min after that my mac grinded to a hold, and I rebooted, everything boots...