Update:
Finally had some time to sit and putz with it. Seems it was a carry over issue between what the password was in /opt/fog/.fogsettings for "fogproject’ versus what the UI had for the TFTP settings for the ftp user account, and for the storage node. Interesting that it was able to Image, and pull images though.
For those that may be interested, or have the same issue:
FTP to the FOG server from another box, and test FTP user and password that is shown in the storage management UI. This password should ALSO match what is in the FOG Settings in the UI for TFTP server. In my case… the password in the GUI would not allow me to connect to the FTP. Started searching for the proper way to change the FTP password for FOG… but ended up finding that the password was different in the .fogsettings file. I tried the password in the settings file and it worked to connect to the ftp.
At this point, I took the password shown for fogproject in /opt/fog/.fogsettings and placed it in the UI for the Storage, and TFTP server settings. Attempted to delete from the UI… and bingo, all good.
A good ref that helped to figure this out:
Troubleshoot_FTP