Error in ftp by WP

Since update to 321 I am having trouble ftp-ing anything to my site ? can’t upload themes or plugins ?

In my ftp client this is the error ;

Error: Critical file transfer error
Status: Starting upload of C:\Documents and Settings\Owner\Desktop\WORD PRESS WORK\
Response: 550 Can’t change directory to /public_html/wp-content/themes/BusinessLadythemeSalesLtr: No such file or directory
Command: CWD /public_html/wp-content/themes

Haven’t tried the cpanel dash upload yet but my question is what has changed that can cause my ftp to not work ?

I have not changed a thing in my ftp client either.

seems a bit strange, like wordpress is trying to take over my site ! ftp and all ! ??

Please help !