Quite honestly its a complicated situation and there were and still are many little issues that have come up when upgrading from v3.x to v4.0, for some users the upgrade path is painless, others it has been a very bumpy road, so we decided to not notify users via the update check until all the issues were addressed.
Unfortunately we realized that a smooth upgrade was not possible 10% of the time, requiring the user to perform several steps to backup their v3.x settings and then restore them into v4.0. For novice users this has proved to be very time consuming on me trying to assist them in getting upgraded.
On windows vista & 7 FlashFXP v3.6 runs in compatibility mode and everything can be just fine and dandy. However FlashFXP v4.0 does not run in compatibility mode and thats where things can get very interesting, for example I spent nearly a week trying to determine why v4.0 would not work for a customer, it turned out that his web filtering software was interfering with FTP connections, this issue didn't effect just FlashFXP v4.0 but also other ftp clients, ironically v3.6 was unaffected because it was running in compatibility mode. However forcing v4.0 into compatibility did not provide the same result. The company that developed the web filtering software confirmed the compatibility issue in their software and admitted that it was a known issue and eventually released a fix.
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