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Chad, sorry for the inconvenience! We'll be happy to investigate what's going on here. Not aware of any bugs in 1.7 which could cause this, but that just means that we haven't found any yet. :-)

In the meantime, you can work around the problem using the steps in this forum post, even though you're using a different WebDAV provider.

Just skip the steps that aren't relevant to the folder structure that your host uses. (No need to move things into a Backup folder, for example.)