diff --git a/rse/plugins/org.eclipse.rse.subsystems.files.ftp/src/org/eclipse/rse/internal/subsystems/files/ftp/connectorservice/FTPConnectorService.java b/rse/plugins/org.eclipse.rse.subsystems.files.ftp/src/org/eclipse/rse/internal/subsystems/files/ftp/connectorservice/FTPConnectorService.java
index 71cb8367f28..b02d2791cf6 100644
--- a/rse/plugins/org.eclipse.rse.subsystems.files.ftp/src/org/eclipse/rse/internal/subsystems/files/ftp/connectorservice/FTPConnectorService.java
+++ b/rse/plugins/org.eclipse.rse.subsystems.files.ftp/src/org/eclipse/rse/internal/subsystems/files/ftp/connectorservice/FTPConnectorService.java
@@ -19,6 +19,7 @@
  * Javier Montalvo Orus (Symbian) - Fixing 176216 - [api] FTP sould provide API to allow clients register their own FTPListingParser
  * Javier Montalvo Orus (Symbian) - [187531] Improve exception thrown when Login Failed on FTP
  * David Dykstal (IBM) - added RESID_FTP_SETTINGS_LABEL
+ * David McKnight       (IBM)     - [196632] [ftp] Passive mode setting does not work
  ********************************************************************************/
 
 package org.eclipse.rse.internal.subsystems.files.ftp.connectorservice;
@@ -48,21 +49,24 @@ import org.eclipse.ui.console.MessageConsole;
 public class FTPConnectorService extends StandardConnectorService 
 {
 	protected FTPService _ftpService;
-	private IPropertySet _propertySet;
 	
 	public FTPConnectorService(IHost host, int port)
 	{		
 		super(FTPSubsystemResources.RESID_FTP_CONNECTORSERVICE_NAME,FTPSubsystemResources.RESID_FTP_CONNECTORSERVICE_DESCRIPTION, host, port);
 		_ftpService = new FTPService();
-			
-		_propertySet = getPropertySet("FTP Settings"); //$NON-NLS-1$
+		getPropertySet();
+	}
+	
+	private IPropertySet getPropertySet()
+	{
+		IPropertySet propertySet = getPropertySet("FTP Settings"); //$NON-NLS-1$
 		
-		if(_propertySet==null)
+		if(propertySet==null)
 		{
 			
 			//Active - passive mode
-			_propertySet = createPropertySet("FTP Settings"); //$NON-NLS-1$
-			_propertySet.addProperty("passive","false",PropertyType.getEnumPropertyType(new String[]{"true","false"})); //$NON-NLS-1$ //$NON-NLS-2$ //$NON-NLS-3$ //$NON-NLS-4$
+			propertySet = createPropertySet("FTP Settings"); //$NON-NLS-1$
+			propertySet.addProperty("passive","false",PropertyType.getEnumPropertyType(new String[]{"true","false"})); //$NON-NLS-1$ //$NON-NLS-2$ //$NON-NLS-3$ //$NON-NLS-4$
 			
 			// FTP List parser
 			String[] keys = FTPClientConfigFactory.getParserFactory().getKeySet();
@@ -74,13 +78,14 @@ public class FTPConnectorService extends StandardConnectorService
 			
 			Arrays.sort(keysArray);
 			
-			_propertySet.addProperty("parser","AUTO",PropertyType.getEnumPropertyType(keysArray)); //$NON-NLS-1$ //$NON-NLS-2$
+			propertySet.addProperty("parser","AUTO",PropertyType.getEnumPropertyType(keysArray)); //$NON-NLS-1$ //$NON-NLS-2$
 		}
-		if (_propertySet instanceof ILabeledObject) {
+		if (propertySet instanceof ILabeledObject) {
 			String label = FTPSubsystemResources.RESID_FTP_SETTINGS_LABEL;
-			((ILabeledObject)_propertySet).setLabel(label);
+			((ILabeledObject)propertySet).setLabel(label);
 		}
-	} 
+		return propertySet;
+	}
 	
 	protected void internalConnect(IProgressMonitor monitor)  throws RemoteFileException, IOException
 	{
@@ -89,14 +94,14 @@ public class FTPConnectorService extends StandardConnectorService
 
 	private void internalConnect() throws RemoteFileException, IOException
 	{
-
+		IPropertySet propertySet = getPropertySet();
 		SystemSignonInformation info = getSignonInformation();
 		_ftpService.setHostName(info.getHostname());
 		_ftpService.setUserId(info.getUserId());
 		_ftpService.setPassword(info.getPassword());
 		_ftpService.setPortNumber(getPort());
 		_ftpService.setLoggingStream(getLoggingStream(info.getHostname(),getPort()));
-		_ftpService.setPropertySet(_propertySet);
+		_ftpService.setPropertySet(propertySet);
 		_ftpService.setFTPClientConfigFactory(FTPClientConfigFactory.getParserFactory());
 		
 		
diff --git a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/widgets/services/ServicesForm.java b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/widgets/services/ServicesForm.java
index 54e744cfd00..669ab4c89d8 100644
--- a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/widgets/services/ServicesForm.java
+++ b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/widgets/services/ServicesForm.java
@@ -12,7 +12,7 @@
  * Emily Bruner, Mazen Faraj, Adrian Storisteanu, Li Ding, and Kent Hawley.
  * 
  * Contributors:
- * {Name} (company) - description of contribution.
+ * David McKnight (IBM) [196632] make sure selected element is marked selected
  *******************************************************************************/
 
 package org.eclipse.rse.ui.widgets.services;
@@ -137,10 +137,17 @@ public class ServicesForm extends SystemBaseForm implements ICheckStateListener
             	if (selection instanceof StructuredSelection)
             	{
             		StructuredSelection ss = (StructuredSelection)selection;
-            		_factoryViewer.setChecked(ss.getFirstElement(), true);
-            		unCheckOthers((ServiceElement) ss.getFirstElement());
-            		_serviceViewer.setInput(ss.getFirstElement());
-            		_descriptionVerbiage.setText(getCurrentVerbiage());
+            		
+            		ServiceElement firstElement = (ServiceElement)ss.getFirstElement();
+            		if (firstElement != null)
+            		{            			
+            			_factoryViewer.setChecked(firstElement, true);            		
+            			unCheckOthers(firstElement);
+            			if (!firstElement.isSelected())
+            				firstElement.setSelected(true);
+            			_serviceViewer.setInput(firstElement);
+            			_descriptionVerbiage.setText(getCurrentVerbiage());
+            		}
             	}
             }
          });
diff --git a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/wizards/SubSystemServiceWizardPage.java b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/wizards/SubSystemServiceWizardPage.java
index 549c0d1e3f3..6aa5aacc88b 100644
--- a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/wizards/SubSystemServiceWizardPage.java
+++ b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/wizards/SubSystemServiceWizardPage.java
@@ -250,7 +250,7 @@ public class SubSystemServiceWizardPage extends AbstractSystemNewConnectionWizar
 	 */
 	private List getConnectorServiceElements(ServiceElement root) {
 		List result = new ArrayList(10);
-		if(root.isSelected())
+		if (!(root instanceof FactoryServiceElement) || root.isSelected())
 		{
 			if (root instanceof ConnectorServiceElement) {
 				result.add(root);