You can use the WGet action to (recursively) download a directory from an ftp server. When you specify the directory, make sure you have a slash (/) in the end, or else wget will fail, thinking you specified a filename.
When doing recursive get, leave the output file parameter blank. Oh, and the username and password will be used for ftp actions, even though wget accepts special ftp parameters for it on the command line.
Oh, yes, I think it will. Microsoft already brainwashed me. In this case, I use WGet to an ftp site on IIS on Windows 2003 server. I did not expect it to be case sensitive, because when I do normal ftp to this site, it does not seem to be case sensitive.