Find the image and save it as a new name to a folder outside your mysitename_website folder. Then use the add image tool to browse to that image to add it to your page. You could also use the add files tool to add it to your site and place a HTML box with the appropriate code to reference the image.8)

About your FTP problem, hate to say this, but if I were you, I'd just dump your host and try and get a refund. Then check out CoffeeCups S-Drive hosting. Lots of good support here