I've have no end of trouble transferring things in ASCII mode. The only time I've used any mode other than binary was when I sent a text file to a VAX using EBCDIC mode (bleh!). If I have to do some file cleanup - whether by using the 'pico cheat' or a cleanup Perl script - that's fine, but I'd rather do it myself than have my file transfer program doing things for me.
Which is why I use Linux and write my own Perl code. :-) I don't do everything myself, but I want the option.
NOTE: I sent e-mail to the author of the original post shortly after she posted it. No reply yet, and AFAIK, she only came back to the site once or twice to see if there were any answers.