Step 3 tosses the error: An FTP error occurred - Can not create new folder . Access Denied. A file or folder with that name already exists, or there could be a permission problem.
I went into filezilla on my server and removed the folder and ftp account from the program. I then recreated the account and assigned the folder to the account. I then experienced the same problem with step 3.
To verify that this was not a problem with Filezilla, I tried creating a folder in CoreFTP and it succeeded.
I just noticed something while staring at the photo you placed in the last post:
The top level folder is /public_html/
My top level folder was // which did not have the folder name.
I checked the settings in DW and found that the root folder was set to //. I removed the // making the root directory setting blank. It now displays as / in the FTP window. After making this simple change, i can now create a folder on the remote machine.