To clairify the problem.
Does the file upload sucessfully but appear incomplete on the ftp server? Or does the file hang at 98% and fail to upload all the way, resulting in a transfer timeout error?
In FlashFXP what is your Upload Packet Size, this option is located in Preferences > Advanced tab
Are you using upload speed limiting?
I downloaded your attached file and performed several tests on multiple ftp servers, Each of my tests were 100% sucessful. I uploaded and then downloaded the image and compared the two using CRC32.
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