By default now, Apple has disabled FTP in OSX Lion, even if you had it turned on before upgrading.
You can enable FTP in Lion still by doing the following steps:
1...Open a terminal (Applications->Utilities->Terminal)
2…Type in (OR copy/Paste)
sudo -s launchctl load -w /System/Library/LaunchDaemons/ftp.plist
If you'd like to turn off FTP again, run Terminal and type:
sudo -s launchctl unload -w /System/Library/LaunchDaemons/ftp.plist