I read through several of the blogs and some folks suggested reinstalling WinSCP...etc...did that...twice...
I reinstalled v3.80 and everything works fine.
I am using WinXP-Pro SP3
Been using WinSCP to access my iPhone for over a year with v3.80 with absolutely NO problems.
Installed v4.1.7 yesterday and it didn't work so the old saying still holds true for me.