FTP isn't very secure ( I enabled it for someone, a year later I see the FTP account was used in a hack attempt! ), so is essentially disabled by default, and best left so.
Look for a program called WinSCP
http://winscp.net/eng/download.php as a download, it logs into SME and allows secure file transfer and permission adjustments. I'm assuming a Windows client.
Websites are in ibays, default is //home/e-smith/files/ibays/Primary/html, check the spelling though