Its annoyed me so been having a look at whats happening.
On the first time it ask for ftp update on a plugin or theme it asks for FTP details.
It comes back with an authentication error.
Not sure why as when I check my logs I have this.
(changed user name to ******)
Wed Mar 26 13:57:27 2014 [pid 1] [*******] OK LOGIN: Client "127.0.0.1"Wed Mar 26 13:57:27 2014 [pid 3] [*******] FAIL MKDIR: Client "127.0.0.1", "/srv/www/samba4all.org/srv/www/samba4all.org/ow_core/test"
Its trying to make a directory in ow_core called test for some reason.
I dont know why but the OW_Root is being added to OW_Core.
It gets called in /ow_system_plugins/base/bol/plugin_services.php
I have just changed $testDir = OW_DIR_CORE . 'test';
to $testDir = 'ow_pluginfiles/test';
And it works. Bugged me for ages that!!!