Allow admin to modify "ROOT" owner files
 

Is it possible to allow the Admin user to ftp into the server and change files/permissions of files with the owner being "Root"? Right now it will not allow even the admin user to modify these files unless they are 777

Thats not possible. The root user is the superuser of a linux system. Normal users can not change files owned by root if the permissions are not 777. If it would be possible to do that without this chmod, everyone would be able to control you complete server.