Before we start I should mention that I am not going to repeat the great step by step guides I already found really useful. But I will mention all the necessary steps and hacks to get it done.
Uninstall the FTP service that is shipped on the Windows Server 2008(Uninstall Old version of FTP)
Go to Server Manager > Roles
Check the following Roles are installed
FTP Publishing Service
FTP Server
FTP Management Console
If it is installed then Remove Role Services.
Restart the Server to apply the changes.
(Without uninstalling the above FTP services it will not allow you to install FTP Service 7.5)
Download the appropriate version of the
Download Microsoft FTP Service 7.5 for IIS 7.0 (x86)
Download Microsoft FTP Service 7.5 for IIS 7.0 (x64)
Install FTP Service 7.5
Installation Errors
E1. Distributed Transaction Coordinator Service may not be running. COM+ Catalog creation failed with error 0X80070422
There are couple of things you might have to try to get around with this error.
1. Check the Distributed Transaction Coordinator Service is running or not
Go to Server Manager > Configurations > Services >
If the service is not running
Double click on the Distributed Transaction Coordinator Service and change the start up type to Automatic (Delayed) and then click on Start.
2. Then Some suggest to start the System Event Notification Service and restart the server.
3. If every thing failed try install FTP7.5 without Manage code support in the FTP service 7.5 for IIS 7.0 Setup Wizard.
That should fix the problem. Then after restarting the server you should be able to see new FTP features in IIS7.0 Manager.