IPSWITCH is fine for transferring files and you were able to transfer a file to your server using it when you tried to activate your Google webmaster's account.

The thing that was done wrong is that you used MS Works to create the file. Programs such as Works/Word etc aren't plain text editors, they add loads of other stuff to files such as formatting controls, font definitions etc. It was also saved with a .html.doc extension instead of an .html one.

Your actual FTP was fine, it's getting into the habit of using a plain text editor such as notepad or the one that Dezina linked to to edit your files that you need to do. Once you have that mastered, a lot of things to do with your site will become a lot clearer.

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Lawrence