Your setup looks correct as far as I can tell. Assuming the queue you have assigned to the task is the one displayed in your screenshot then it should work, if you made changes to the queue you'll need to save the changes to the queue file.
The schedule works like this. When the schedule task is triggered (based on your schedule) it will launch FlashFXP, load the queue file and transfer the queue, once completed, FlashFXP will exit.
The connection to the ftp server is only active during the task.
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