Hi,
how have you tested locally?
Using a localhost server (like the krpano Testing Server)?
Note - when testing with Chrome with local file:// urls, then the krpano embedding script will fall back to Flashplayer usage, because Chrome blocks the loading of local xml files in HTML5.
And the Flashplayer is way more tolerant to xml syntax errors then the HTML5 browsers.
About FTP upload - I would recommend disabling any ascii-binary translation in the FTP tools, that's completely unnecessary in the most cases.
Best regards,
Klaus