I haven't used windows 8 so not really sure what to tell you... However when you say "network shares" are you actually using them in the .vfs as //computer/share or are you mounting them to a drive letter and then using that? Are you running ioftpd as a user or as a system service? If a service are you running it as a user and not the under default system account? [Using the Local System account to access remote shares is probably a bad idea!]
I'm not sure if vista or win7 introduced homegroups, but that might factor into things as well. Is the machine you are mounting shares from running XP or something newer?
Just to rule out a bunch of problems try running it directly as a user who can see the shares and see if that makes a difference...
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