Go through it a step at a time. Turn off "Internet transfer enabled" and turn on "Local transfer enabled." Make sure it runs to completion locally without the FTP step.
Next check your ftp settings. You'll need your hosting provider's ftp server name and your login and password info. The best way to test FTP is to manually run FTP yourself.
Click start/run then type "ftp" in the box and click OK.
You'll get an ftp> prompt. At the prompt, type
open type-your-ftp-hosting-provider-address-here.com
(remember that all commands to the ftp program need to be followed by your pressing "enter".)
If you don't get connected, you might have the wrong name for your ftp server, or your hosting site might be down. Carefully doublecheck your provider's FTP host name on their web site.
If you do get connected, your FTP server should give you some happy message, then prompt you to type your user name and password. Do so.
If you don't get logged in, it should tell you why. You might have the wrong password, your account may be suspended or terminated, your share might be full, you might not have paid your bill this month, or something else might be wrong.
If you do get in, you'll get more information and another ftp> prompt. Read the information carefully, it might also give you a clue if there's something wrong. Look for words like "quotas" and "limits". Next, at the ftp> prompt, type "dir". It should list all the files in your root directory, and might be helpfully followed by any quotas and or limitations, and what you have remaining.
Type "quit" to get out of FTP.
Now that you've verified your ftp settings, retype them all into WeatherLink's "Internet Connection Settings" dialog, and click OK. Get back to the main screen and wait till it tries again (you might want to temporarily speed up your profile's upload frequency for testing.)
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Also, check your Weather Underground settings. Verify your station name and password are correct by signing onto your weatherunderground account on the web, then verify your settings in your weather station match.
Good luck!