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This seems pretty obvious, but I noticed I wasn't the only one getting this error. If you want to install an app or something like FTP Server, you must be on Geohot's CFW, but if you are on Kakaroto's CFW then you have to revert back to the OFW 3.55. You can get the OFW here:
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After going to OFW you can then transfer to Geohot's. Also, if you already have tried going straight from Kakaroto to Geohot, then all is not lost, just revert back to the OFW and then go to Geohot again. That's what I did, and I now have my FTP server.