SOLVED

Hi, I had the same problem in Ubuntu 8.04 & the GUI for GFTP 2.0.18
Says "Loading directory listing xxxxxx" but doesn't do anything.

I managed to solve it by changing the folder permissions for the target 
directory.
At the terminal "sudo chmod 777 -R /path/to/target/ftp/folder".

Folder copies work fine now.

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gFTP won't transfer a directory using SSH2
https://bugs.launchpad.net/bugs/135689
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