Hmmm, I tested some text files out on out ftp that allows for anonymous login and read the contents of the text file in the following way:
status = DS_OpenEx ("ftp://ftp.ni.com/outgoing/test.txt[text]", DSConst_Read,	NULL, NULL, DSConst_EventModel, 5000, &dsHandle);
Delay(1);
status = DS_GetDataType (dsHandle, &type, &dim1, &dim2);		
status = DS_GetDataValue (dsHandle, CAVT_CSTRING, data, 10, NULL, NULL);
It seemed to work ok.
Try reading it from there and see if you get anything. If you can, try to setup the ftp server to allow anonymous logins, temporarily, just to test whether its the password or not. 
And try adding delays as well, and see if that changes anything.
Bilal 
					
				
			
			
				
	Bilal Durrani
NI