Doesnt Work At All

Hmmm… I only comment because I’ve used it several times without a problem.
Step back, start over. You made a directory with which to FTP to. Is in a directory that might be write protected? Is the directory also write protected? Test with one file file. Work? If not, you gotta peel back and find out why.
I had a problem with it once doing over 100 files; brought it down to 30 at a time and it’s ok. Don’t forget, WP takes each image and makes several different copies of varying sizes. Also, if any of your files are over 2MB, the server might have a limit set that may stop the upload.
As I say I’m no expert, but that plugin has been a godsend for me. As I say, back up, take each step one by one. Try one file. If it works, try 10. Look for where it won’t work and try to figure why. I can tell you it’s a great plugin that should work. If it isn’t, it’s probably not you, just a server setting somewhere. Also; I always place the FTP folder at the root level of the WP installation. See if that helps.
If nothing else, write the developer!…

Always good advice – one small step at a time.
So i ftp’d 1 jpg into uploads folder (checked its still 644), activated *just* AddFromServer and again – cannot copy to same place. (And still cant go up folderlevels if i enter any).

Supposedly at this point it would targeted to the directory containing all the media. It’s there that it would make the several copies that are available when you try to place media, and you get the drop-down to choose which size, etc.
I would look into where the media files are held and see if that one file, and all it copies made it in there.
If not, it would be next to check if anything is getting in there from WP’s own import method, or if it’s Add From Server.
As I say, I’m no expert; however, I DO remember a thread once about the version of JavaScript the server is running, and, if the Add From Server is rated for the one in use. I had a small issue years ago with GoDaddy about the JavaScript version, and I had to buy in to a newer server because of it.
So if this were me, that’s the kinds of things I’d be looking at. Something is NOT functioning, so you need to be determining is it be blocked, or is the mechanism of importing media is broken…