Can't connect to a local FTP - "Connection closed by remote host."

"If you can connect you have port 21 opened. However that is not all that is needed as port 21 is just control port and an FTP server opens other ports for actual data transmission. See if there is something within your firewall config that can unblock FTP as a whole service (not just port 21).

Also you should probably stay away from FTP Active connections and do Passive instead. Unfortunately the ftp command supports only active ones.

Set IE to do passive mode and try using it from other machine like ftp://10.0.2.1."