Make sure FlashFXP is a trusted application in Outpost Firewall. Normally trusted applications aren't monitored at all by firewalls but i'm not entirely sure if that's the case with Outpost. Based on past experience usually the firewall is to blame for these type of issues.
Prior to releasing FlashFXP 3.4 we conducted many stress tests. Several of these tests involved transferring 50k files with file sizes ranging from 1kb to 1mb. Tests were done over a gigabit lan to a file server and over the internet using an adsl connection.
During all of our tests there were no lockups or freezes.
(The test machine consisted of XP SP2 + all updates, NOD32 anti-virus, and a hardware firewall was involved for internet tests)
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