Something that looks interesting is this statement:
(00010) 04/10/2007 13:48:33 – dussmann (127.0.0.1)> 421 Connection timed out.
I believe that error 421 is a Server initiated closing of the connection. Have you tried to ftp a file to this server outside of BizTalk. Perhaps try to ftp a file via the command prompt. This may not be a BizTalk issue?
Also, I noticed in your configuration that you are not specifying a "Folder" for the file to get moved to. In this event it will probably end up in the root directory or the home directory for the account that you are using to connect.