Are you trying to ftp login as a normal user or anonymous? The fact that you are getting “CanÂ´t set guest privileges” seems to indicate you are trying anonymous. I don’t think anonymous ftp is setup by default, but the normal user account ftp should work. If you really want to setup anonymous ftp, you will need to read a bit, such as the ftpd doc, create a “ftp” user account with home directory, etc. Come back if you questions.
You need an application listening on that port. eg: you install and config apache to listen on port 80 and you will have port 80 open.