Changing the Encode setting to 7s (or 1s) DOES cause the camera to record snapshots internally every 7 seconds (or 1 second) - but still NOTHING is sent to the FTP server.
However, every midnight the DVR does create a new Date directory on the FTP server - so I know it can write to it and the FTP connection settings are correct.
So - at this point I am still not able to get time based snapshots set to an FTP server from the DVR.
-jens