I have a similar problem where I dont have overwrite permissions (according to the site) but if I run filezilla I can overwrite no problems.
Something to do with use the same account to update that was used to create the oxwall site.
I'm not sure but I am waiting on an answer and fix for this.
Probably the user of folder and files is different from the FTP user you are using. Check into that and probably you'd have to change ownership for the code files.
It happened to me too. At first I had not idea what username and password to use. When I tried the username and password that I used to log in to the control panel of my web hosting server, it worked.
I used the cpanel log in but it told me the same thing it told Michael (no overwrite permissions). Can this be fixed with a simple CHMOD change of file permissions? OR, is it possible to change this by switching to debug mode, or the other mode(s) in the config file?
You should use chown, not chmod command. And this should be preferably done via SSH (since I don't know any other options). Consider about contacting your hosting company.