ioFTPD back in v7.3.0 changed over to dynamically linked runtime libraries to see if that made a difference in stability. It now requires the VS2008 SP1 runtime be installed which is by default in win7 and possibly vista as well, but not XP/2003. Lots of apps install this as part of their installation, but without a real installer for ioFTPD the best I could do was note the error you'll see in the README and the Changelog file along with a link on how to get it.
Looking up windows error 14001 gives 'The application has failed to start because its side-by-side configuration is incorrect. Please see the application event log or use the command-line sxstrace.exe tools for more detail.'
That's the dynamically linked SxS runtime library having an issue. Not sure if it was because it wasn't installed or you had a version mismatch but looks like you figured it out. It isn't the error I expected you to get if it wasn't installed though.
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