As I said the log file contains no errors.
I have figured out the issue. It appears that a snip it of code I wrote was introducing a whitespace character at the end of the remote file name. This had the effect of causing Microsoft FTP on IIS 7 to corrupt the file. This is probably a bug with IIS but it is easily remedied by trimming the file names before submitting them to IIS.
This is clearly a problem with IIS it should throw an error not write corrupt the file to the Microsoft Server 2003 file system. Regardless its easier to out fox the problem on the client side by trimming the filename.
Best of luck,
EDT might consider compensating for this Microsoft bug but at very least I am posting the solution here hopefully it will benefit somebody