Interesting, I didn't even know there were two panels. How do I move focus to the local directory panel and how do I control which directory is displayed there? Right now tabbing just moves between address and directory list in the remote side.
Well, there are two selectable interfaces. One has local panel, one not. "Norton commander" interface is the one that has it. Select it on Preferences tab of login dialog.
To switch between the panels use the tab key.
Note that the "Norton commander" interface has different keyboard-shortcuts than the "Explorer-like" one, which you probably use now. Also the "Norton commander" interface is designed to be controlled by keyboard, so it is probably better for you.
The other odd keyboard behavior is that pressing and releasing alt does not move the focus to the menubar as it does in most Windows programs.
It works for me in the both interfaces.