A few people have mentioned to me recently that they’ve been having problems with opening FTP sites using IE 7 when their computers are configured as Web Proxy clients. The problem happens when the users need to log on to an FTP site to gain access.
If you’re having this problem, then check out the ISA Firewall Product Team Blog and Doron Juster’s post at https://blogs.technet.com/isablog/archive/2008/04/03/ie-7-0-may-fail-to-open-ftp-sites-through-isa-server-web-proxy.aspx
Thomas W Shinder, M.D.
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MVP — Microsoft Firewalls (ISA)