SmartFTP destroying my file

I have WindowsXp on a laptop, v.2002 SP 2. I've used SmartFTP for over a year without problems. We recently moved our provider to GoDaddy. I tried uploading an approx. 80kb .html file (front page of a web site) and received a "failed" message. The message suggested I use the transfer queue which I did. Let me say here that this is a file that I overwrite each day. I found that I had to delete (or rename) the file on the server before I could upload. But...once I did that one time, I've been able to overwrite each day with no problem. [Another] but...here's where the more severe problem occurs. The file that keep on my laptop which I update and then upload gets all the text deleted whenever I close SmartFTP. Even if I simply open SmartFTP and not connect to the server, it still deletes the text when I close SmartFTP. I've experimented and thought maybe it was when I disconnected from the server but, as I said, I don't have to connect for this to happen. I've actually watched the 77kb (for example) change to 1kb in front of my eyes!

Needless to say this is very exasperating especially if I forget to make a copy before opening/closing SmartFTP. I just downloaded the latest beta and restarted but it didn't help. I hope this is enough info.

Here's a log:
[21:42:19] SmartFTP v2.5.1008.40
[21:42:19] Resolving host name "vps.ibbc.net"
[21:42:19] Connecting to 72.167.145.127 Port: 21
[21:42:19] Connected to vps.ibbc.net.
[21:42:19] 220 (vsFTPd 2.0.5)
[21:42:19] USER ibbcadmin
[21:42:19] 331 Please specify the password.
[21:42:19] PASS (hidden)
[21:42:19] 230 Login successful.
[21:42:19] SYST
[21:42:19] 215 UNIX Type: L8
[21:42:19] Detected Server Type: UNIX
[21:42:19] FEAT
[21:42:20] 211-Features:
[21:42:20] EPRT
[21:42:20] EPSV
[21:42:20] MDTM
[21:42:20] PASV
[21:42:20] REST STREAM
[21:42:20] SIZE
[21:42:20] TVFS
[21:42:20] 211 End
[21:42:20] PWD
[21:42:20] 257 "/home/ibbcadmin"
[21:42:20] CWD /www/ibbc/data/members
[21:42:20] 250 Directory successfully changed.
[21:42:20] PWD
[21:42:20] 257 "/www/ibbc/data/members"
[21:42:20] TYPE A
[21:42:20] 200 Switching to ASCII mode.
[21:42:20] PASV
[21:42:20] 227 Entering Passive Mode (72,167,145,127,35,228)
[21:42:20] Opening data connection to 72.167.145.127 Port: 9188
[21:42:20] LIST -aL
[21:42:21] 150 Here comes the directory listing.
[21:42:21] 3253 bytes transferred. (22.6 KB/s) (140 ms)
[21:42:21] 226 Directory send OK.