Dave,
In version 1.04 the files i got with FTP from the Humax were definitely encrypted but could easily be processed and made unencrypted with Videoredo ,i know, i have done it .
Then when 1.05 came along that was as you say ,different and you needed to either copy the files to a USB stick or to a HDD and then either( again tried and found it works) FTPed to the PC or the HDD or Stick removed and brought to the PC.It works both ways.
Thanks though for putting me on the right track to first copy the recordings onto Stick or HDD, why Humax does it this way is a myth as others don't do it( Toppy,Tivo ,Beyonwiz etc)