l.d.m: The most likely cause is real filesystem permissions. Running as the same user as ioFTPD can you rename the directory in windows? I run ioFTPD under a limited rights account and sometimes I forget to set the permissions on files/directories I move into the VFS and I see the same thing.
The other possibility (highlighted by tuff's issue with the itcl crc) is that the error reason isn't always accurate. If someone is under the directory tree transferring a file, etc windows may prevent any renaming of parent directories. Try the command when the server doesn't have anyone online and see if that makes a difference.
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