>331 Password required for root.
>530 User root may not use FTP (invalid shell).
>logon failure, so quitting

You can't FTP as root because that would be a huge security risk (people 
could get access to everywhere on your machine).  It is disabled in all 
secure versions of FTP daemons, as far as I know.

You also shouldn't be able to telnet and log in as root directly for the 
same reason.  Logging in from the console as root is permitted in some 
cases, however.

Solution:  FTP everything in/out with your own personal account, then 
'su' to root in telnet and use the files that way.

-Andy Sinesio
Web developer
Imation Internet Studio, http://www.imationstudio.com/