My problem occurs when using Safari 1.3.2 in OS X 10.3.9 on a G4 Quicksilver 2002. Yeah, I know, that's our FTP server...I'll try it on my production machine.
OK, looks like my issue is from the old software versions. Seems to work properly in 10.4.11 with Safari 3.0.4.
*quits whining and goes back to work*