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I have opened 2 threads at Microsoft's places already:

But no one seems to be able to help me, or know the answer. As I have mentioned I read the 7.5 documentation but I can't find any options within IIS 8.5.

PASV port range is enabled and the FTP does work. If I try to FXP I get:

(17:40:23) [2] 501-Server cannot accept argument.
(17:40:23) [2]  Win32 error:   The parameter is incorrect. 
(17:40:23) [2]  Error details: Client IP on the control channel didn't match the client IP on the data channel.
(17:40:23) [2] 501 End

which of course is expected since I haven't enabled FXP

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up vote 1 down vote accepted

It seems you are looking for the dataChannelSecurity element under system.ftpServer/security node.

On my IIS 8.5, the settings are under system.applicationHost/sites/siteDefaults/ftpServer/security/dataChannelSecurity,

so you were looking in the wrong place, the location is the same for IIS 7.5

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