This appears to be a compatiblity issue because FlashFXP is not expecting the response to contain multiple lines.
Quote:
331-NtPostU for ADO(Serv-U Database Extending DLL) v0.2.2.1018
http://www.ntpost.net
mail:dushm@hotmail.com
331 Response to otp-md5 70 bear218 required for skey.
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I have addressed this issue for the next beta release, If you're a registered user you'll be able to download this build when it's released from the beta area. The new build will be 964.