Locust,
After further testing I was able to eliminate the high CPU usage in alg.exe and flashfxp.exe when using ICS. To solve the problem I ran the following Winsock Fix
http://www.snapfiles.com/get/winsockxpfix.html and rebooted my system.
FlashFXP doesn't communicate with alg, It uses standard winsock API's for socket connections.
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I had transfer/rename/overrite issues with this beta version
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This was fixed along time ago and should no longer be an issue with the current beta release.