I'll take a shot at this:
there are two possible modes of file transfers; binary and ascii.
ascii is just straight ascii (or text), while binary includes all sorts of system characters and that is why reading the contents of a binary file are impossible from a human standpoint - its almost all machine code.
an .rpm package is binary, because its machine code.
ftp, which transfers files, runs in either mode. if you were sending new template or .txt files over to the e-smith server and gateway then it would make sense to use ascii mode, but sending the .rpm would require binary mode.
from your ftp client, to switch between modes you type
binary -> returns "200 Type set to I."
ascii -> returns "200 Type set to A."
I think it should default to binary, but not all ftp clients do that and hence you originally transferred the files onto the e-smith server in ascii mode.
hope that helps a bit.