I realize this is a dead thread, but I thought I'd put it out there…
I have a similar problem:
I had xampp setup on localhost with a brand new install, Joomla & FTP working and all, as of a week ago. I altered the proftpd.conf file as the tutorial stated (found in xampp/xamppfiles/etc/proftpd.conf), changing the default password for the FTP account. After restarting the xampp via control panel, all worked perfectly. Then, this week without changing any files, not having updated the proftpd.conf file again, my FTP login fails with access denied, incorrect login/password. I checked the proftpd.conf file again to find that my username (still 'nobody') and my customized password were both still in the same place in the file— nothing had changed. Anybody know what I'm doing wrong or possibly how to fix this issue?
Thanks in advance,