Okay, I enabled suexec on the site and recreated the ftp user and it worked. I had to recreated the user for it to work.
I will say that I tried this as I read this in another forum before posting. It worked initially but did not work later for some reason.
If you don't here back from me, then the fix stuck. Thank you. I'm going to go grab some sleep.. I had a 2 hour nap in the last 48 hours and I'm starting to feel like I'm loosing my edge...