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ASCII vs. Binary FTP.

There are two different modes one can use when uploading or downloading a file using FTP.

Binary (8-bit).: This mode is required when transferring compressed files, executable programs (or 'binaries'), graphics, sounds, or anything else that isn't in plain text format. If you transfer one of these files in ASCII mode, the resulting file will be a garbled mess that will not function.
ASCII (7-bit).: This mode is only used when transferring plain text. This includes TXT and HTML files. If you transfer one of these files in Binary mode, the file will still contain all the text, but it may all be on one line, or the line breaks may all have ^M at the end. This is because different operating systems (DOS, Unix, Mac) use different codes to specify a line-break.

If in doubt, use Binary mode when transferring files. Most good FTP clients will automatically figure out which mode should be used.