ftp://x.x.x.x gives error: An error occurred opening that folder on the FTP Server. Make sure you have permission to access that folder. Details: The operation timed out.

When you attempt to use browser based ftp:  ftp://x.x.x.x, you get the following error:

An error occurred opening that folder on the FTP Server. Make sure you have permission to access that folder. Details: The operation timed out.

This is because you need to configure your VDS for IIS7 PASV mode.  Please see the following article: http://learn.iis.net/page.aspx/309/configuring-ftp-firewall-settings/