Yeah the ftp inticed me also, I guess I didn't read the fine print closely enough.
The way I fixed this was just to use uploadify (free) to allow for multiple uploads.
It's not exactly what I wanted, but it will do for now until I get a chance to write my own php ftp client.
heres a link to that uploadify if you need it. I just have it set to upload to the images folder for pg2