Can't establish ftp connection with WinInet to IIS's "localhost"

I am building a WinInet routine that is going to connect via ftp and http to
a server. I'm trying to test it by connecting to my localhost with IIS
running.

In the test I establish a CInternetSession by taking the defaults:

    m_pInternetSession = new CInternetSession();

(which works) and then try and create an FtpConnection by

    try {
        m_pFtpConnection = new CFtpConnection(m_pInternetSession,
m_sHostName
            , m_sUserName, m_sPassword);
}
    }
    catch(CInternetException* pe) {
        CString sMessage = _T("Error creating an ftp connection\n");
        sMessage += _T("HostName: ") + m_sHostName + _T("\n");
        sMessage += _T("UserName: ") + m_sUserName + _T("\n");
        ShowErrorMessage(pe, sMessage);
        return false;
    }

When I run this with a UserName of IUSR_DEL340 and an empty password I get
the message box with the following text:

Error creating an ftp connection
HostName: localhost
UserName: IUSR_DELL340
The password was not allowed.

When I try and logon using the command window and "ftp localhost," it fails
for a User of IUSR_DELL340 and an empty password. The message is "530 User
iusr_dell340 cannot login."

As far as I know, I've never put a password on the IUSR_DEL340 account.
What do I use and how do I set this password if one is needed?

I am using XP Pro and VS2008.

Ed
--
Edward E.L. Mitchell
12214 Lakewood Ct
Fort Myers, FL 33908
Phone: (239)415-7039
Web: www.racesail.org