Does running ftp server = running IIS server?

First off, I'd like to apologise for my ignorance, as this will undoubtedly sound like stoopid questions to some of you. I will try to be clear & provide as much info as possible (probably much non-related info too, sorry) I installed W2K Adv Server at home.

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First off, I'd like to apologise for my ignorance, as this will undoubtedly sound like stoopid questions to some of you. I will try to be clear & provide as much info as possible (probably much non-related info too, sorry)
 
I installed W2K Adv Server at home. During install I ticked the ftp option, but unticked most/all others. This machine (192.168.0.2) is behind a NT4 workstation (192.168.0.1). The 2nd nic in the NT4 box is connected to my cable modem. I also have Sygate (ICS + firewall) running on the NT4 box.
 
I have been using the free web space (10MB) provided by my ISP to store drivers 'n such. I have now run out of room & want to use my W2K box to store my files & use a ftp client (Cuteftp-Pro) to access them from the 'Net.
 
Using the ISM applet in Admin Tools, I right-clicked my computer & chose New > FTP. I followed the wizard instructions & created my site, "Stuff", & my home folder, which I called "Storage". I also stopped the default site service.
 
I have a few questions related to what I've done. I hope they are not too many, but understand if they are;
 

Am I now running what you call a IIS server?
 
How do I go about applying all the Hotfixes/patches? Windows update doesn't show anything different.
 
Considering the Class C address, what about 'Net access from ftp client?
 
Do (should?) I want to Allow Anonymous Connections or Allow IIS to control Password?
 
Can potential hackers "see" my password as I'm logging in? If so, what are my options?
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Thank you for your time. Any help offered will be most appreciated.

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1) Yes, you are running IIS
2) Make sure you have SP2. Also, there was a post, in I believe the networking forum, about securing IIS. Read that post
3) To access the machine from the net. You ICS computer would have to forward all requests to your Adv Server Machine. And if I remember right. Port forwarding on ICS is a pain. You might want to put your FTP server on the same machine as ICS. You would then use the IP address your ISP gave you.
4) I would set it up to allow password. To many people sniffing ports an all.
5) Yes, theoretically, they could see your password. But in reality, since it is only your home machine, I wouldn't worry about it. The chances of someone wanting to see your password, then doing it, are very small.