server to server transfer

I have read that server to server transfer should work, and I'm doing it as shown in the tutorial... but all it does is showes server to server and keeps giving a retry time. I have contacted the host to my 2 dedicated servers (1and1) and they confirmed that "We do not block any form of traffic between your Servers." when I asked if FXP was available. Any suggestions?
Thanks!
Andrew

Guess I should add, I connected directly to my modem and shut down my firewall just to be sure these things were not causing a problem and it did not help.

Most likely FXP is disabled in the FTP server configuration.

Within SmartFTP? Where is that setting?

Or on my servers? I already confirmed with them that FXP is allowed as stated in original post.
Thanks!
Andrew

In the configuration of your FTP server.