Had this problem a couple years ago, got this info from Xara support, and it worked. Involves Registry changes, be careful.
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Please follow these steps carefully and only make the advised changes. Making other changes to your registry could cause stability issues with your operating system;

1) Close all Xara programs. (Important! the changes won't be made or have any affect on the program if it is open, and values would be overwritten when you close it.)

2) Go to Start > Run (if you're using Windows Vista or 7 press the Windows key + R) and type regedit then click OK.

3) Navigate to the registry key for the version of program you are using:

64bit: HKEY_CURRENT_USER\SOFTWARE\Xara\WebDesignerPremium x64\10\Options\FTPLibcURL

32bit: HKEY_CURRENT_USER\SOFTWARE\Xara\WebDesignerPremium \10\Options\FTPLibcURL

4) Change the value ConnectTimeout, LoginTimeout and ResponseTimeout to "20000" (this is the time in miliseconds, so this would be 20 seconds).

Please note this example is for version 10. If you are using a different version you'll need to change the path accordingly.

5) Close the registry and open Xara

Does the problem now appear?

Kindest regards
Customer Support
Xara Group Ltd