Why can't I upload?

I am new to SmartFTP and connot seem to upload anything. I can connect, but when I try to drag and drop from the Local Browser to the Remote Browser, I get "Permission Denied" - is this a OS-level security issue? How to fix?

Am I doing something wrong?

Here is the FTP log:

[14:02:58] SmartFTP v2.0.997.4
[14:02:58] Resolving host name "ftp.example.org"
[14:02:58] Connecting to [omitted] Port: 21
[14:02:58] Connected to ftp.example.org.
[14:02:58] 220---------- Welcome to Pure-FTPd [TLS] ----------
[14:02:58] 220-You are user number 10 of 50 allowed.
[14:02:58] 220-Local time is now 14:02. Server port: 21.
[14:02:58] 220-IPv6 connections are also welcome on this server.
[14:02:58] 220 You will be disconnected after 15 minutes of inactivity.
[14:02:58] USER ftp@example.org
[14:02:58] 331 User ftp@example.org OK. Password required
[14:02:58] PASS (hidden)
[14:02:59] 230-User ftp@example.org has group access to: 65535
[14:02:59] 230 OK. Current restricted directory is /
[14:02:59] SYST
[14:02:59] 215 UNIX Type: L8
[14:02:59] Detected Server Type: UNIX
[14:02:59] FEAT
[14:02:59] 211-Extensions supported:
[14:02:59] EPRT
[14:02:59] IDLE
[14:02:59] MDTM
[14:02:59] SIZE
[14:02:59] REST STREAM
[14:02:59] MLST type*;size*;sizd*;modify*;UNIX.mode*;UNIX.uid*;UNIX.gid*;unique*;
[14:02:59] MLSD
[14:02:59] ESTP
[14:02:59] PASV
[14:02:59] EPSV
[14:02:59] SPSV
[14:02:59] ESTA
[14:02:59] AUTH TLS
[14:02:59] PBSZ
[14:02:59] PROT
[14:02:59] 211 End.
[14:02:59] Detected Server Software: PureFTPd
[14:02:59] PWD
[14:02:59] 257 "/" is your current location

Okay, fine. Now, open the "Incoming" folder on the server, and then I open a "New Local Browser" and attempt to drag and drop a file to the FTP window.

Here is the FTP log:

[14:06:19] CWD /incoming
[14:06:19] 250 OK. Current directory is /incoming
[14:06:19] PWD
[14:06:19] 257 "/incoming" is your current location
[14:06:19] TYPE A
[14:06:19] 200 TYPE is now ASCII
[14:06:19] PASV
[14:06:19] 227 Entering Passive Mode ([omitted])
[14:06:19] Opening data connection to [omitted] Port: 20448
[14:06:19] MLSD
[14:06:19] 150 Accepted data connection
[14:06:19] 219 bytes transferred. (4.64 KB/s) (46 ms)
[14:06:20] 226-Options: -a -l
[14:06:20] 226 2 matches total
[14:06:29] Remote file exist check: "myfile.wmv".
[14:06:29] TYPE I
[14:06:29] 200 TYPE is now 8-bit binary
[14:06:29] SIZE myfile.wmv
[14:06:29] 550 Can't check for file existence
[14:06:29] File size check (SIZE) failed. File not found or permission denied.
[14:06:29] PASV
[14:06:29] 227 Entering Passive Mode ([omitted])
[14:06:29] Opening data connection to [omitted] Port: 32024
[14:06:29] STOR StoneOfDestiny.wmv
[14:06:29] 553-Can't open that file: Permission denied
[14:06:29] 553 Rename/move failure: No such file or directory
[14:06:29] MDTM 20060814024102 myfile.wmv
[14:06:29] 550 Can't check for file existence
[14:06:29] Transfer failed.
[14:06:29] TYPE A
[14:06:29] 200 TYPE is now ASCII
[14:06:29] PASV
[14:06:29] 227 Entering Passive Mode ([omitted])
[14:06:29] Opening data connection to [omitted] Port: 64623
[14:06:29] MLSD
[14:06:29] 150 Accepted data connection
[14:06:29] 219 bytes transferred. (4.64 KB/s) (46 ms)
[14:06:30] 226-Options: -a -l
[14:06:30] 226 2 matches total
[14:07:20] NOOP
[14:07:20] 200 Zzz...