Trying create archive in Ubuntu 12.10 on FTP thought Nautilus right click Compress I got this message: Could not create the archive. You don't have permission to create an archive in this folder. In Ubuntu 12.04 it's ok.
When you're ready to create the archive, do this: press
After you've connected, go back to the Archive Manager and click the "new" button. Tell it to save the file to where you need it (in the FTP directory.)
If this method didn't work for you because you couldn't access the FTP directory from within the Archive Manager, then try this alternate approach:
The key to both of these is to run the program as Root, incase the problem was a system permission limitation on your end. If the FTP server is rejecting write access, then there's nothing you can really do.