Retry problem when using password in session

Can someone please explain the following: on my shared computer, I use favorites to connect to my ftp servers, by specifying the password in a session. When I do, it logs in, and I can browse my server. however, when I try to queue an item for up-/download it appears to not use the entered password. When I change my favourite to include username AND password, I have no problems. Following are the logs for login and the log of the queued item.

[13:36:18] SmartFTP v3.0.1038.0
[13:36:29] Resolving host name "XXX"
[13:36:29] Connecting to 69.175.8.210 Port: 21
[13:36:29] Connected to XXX.
[13:36:29] 220---------- Welcome to Pure-FTPd [TLS] ----------
[13:36:29] 220-You are user number 6 of 50 allowed.
[13:36:29] 220-Local time is now 06:36. Server port: 21.
[13:36:29] 220-IPv6 connections are also welcome on this server.
[13:36:29] 220 You will be disconnected after 15 minutes of inactivity.
[13:36:29] USER XXX
[13:36:29] 331 User XXX OK. Password required
[13:36:29] PASS (hidden)
[13:36:29] 230-User XXX has group access to: XXX
[13:36:29] 230 OK. Current restricted directory is /
[13:36:29] SYST
[13:36:29] 215 UNIX Type: L8
[13:36:29] Detected Server Type: UNIX
[13:36:29] RTT: 117.530 ms
[13:36:29] TYPE I
[13:36:29] 200 TYPE is now 8-bit binary
[13:36:29] REST 0
[13:36:29] 350 Restarting at 0
[13:36:29] PWD
[13:36:30] 257 "/" is your current location
[13:36:30] CWD /public_html/cgi-bin
[13:36:30] 250 OK. Current directory is /public_html/cgi-bin
[13:36:30] PWD
[13:36:30] 257 "/public_html/cgi-bin" is your current location
[13:36:30] TYPE A
[13:36:30] 200 TYPE is now ASCII
[13:36:30] PASV
[13:36:30] 227 Entering Passive Mode (69,175,8,210,118,17)
[13:36:30] Opening data connection to 69.175.8.210 Port: 30225
[13:36:30] LIST -aL
[13:36:30] 150 Accepted data connection
[13:36:30] 395 bytes transferred. (3,11 KB/s) (124 ms)
[13:36:30] 226-Options: -a -l
[13:36:30] 226 6 matches total
[13:36:30] MDTM cgiecho
[13:36:30] 213 20090722130207
[13:36:30] Timezone offset: -18000 seconds (-5.0 hours)

Log of the queued file:
[13:36:50] Resolving host name "XXX"
[13:36:50] Connecting to 69.175.8.210 Port: 21
[13:36:50] Connected to XXX.
[13:36:51] 220---------- Welcome to Pure-FTPd [TLS] ----------
[13:36:51] 220-You are user number 7 of 50 allowed.
[13:36:51] 220-Local time is now 06:36. Server port: 21.
[13:36:51] 220-IPv6 connections are also welcome on this server.
[13:36:51] 220 You will be disconnected after 15 minutes of inactivity.
[13:36:51] USER XXX
[13:36:51] 331 User XXX OK. Password required
[13:36:51] PASS (hidden)
[13:36:51] 530 Login authentication failed
[13:36:51] Active Help: https://www.smartftp.com/support/kb/51
[13:36:51] Source connection error.

In addition, I have this problem on Vista Business, but not on XP Pro