So I have vsFTPd working great on my Debian server with some small minor permission issues however the main thing that scares me is when I login to my FTP account using just II (Internet Explorer), once the window shows all the files and the user double clicks the file he or she desires, you see this below the window

http://i4.photobucket.com/albums/y14...ill/vsftpd.jpg

As you can see from the image above, when the user double clicks the file straight from the ftp server, you can see their login and password in plain text during the download process.

This however does not happen when I take the desired file from the FTP server and "drah * drop" it to my local machine. Then I just get the status transfer bar with no login information shown. This is fine however it's natural for most people to just double click the desired file and this is where I have the security problem.

Can anyone provide a simple solution?

Yeah.

Either drag and drop, or just goto:

Start->Run

cmd(or command)

cd directory(where you want the file to appear)

username

password

ftp serveraddress

cd directory

get file

quit

This 'issue' you're talking about is an issue with ftp.
Look in the urlbar when you are logged in ftp via a browser, should say ftp://usernameassword@domainname.whatever
If you want secure authentication, use ssh and PuTTY

Yes but I can't upload / download files via SSH.