Same issue here. Also, going to Options -> Preferences causes the application to bring up some "An error has occured, send a bug report" dialog (appears to be a FlashFXP one and not the normal Microsoft one).
I realize that Vista is in beta, however, I have found very few applications that don't work so far (I have actually found the OS to be surprisingly fast and usable, if a bit unpolished). But, I guess I'll have to find a different FTP client to use until either iniCom or Microsoft does something to fix this. :-P
[Edit] I've filed an Application Comptibility bug report on this with Microsoft, however, if the FlashFXP folks get access to the Vista beta, they might want to take a look at this too, I guess.
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