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Those connections from a single IP are probably either a virus-infected PC randomly hitting your server and trying to infect it, or possibly somebody probing your FTP server to see if it's vulnerable. Seems logical for a script to make several connection attempts, each one using a different exploit, then if none get through, move to the next IP.
As long as your FTP client is up-to-date and doesn't have any known vulnerabilities, and you're up-to-date on your windows updates, you should be OK.
I wouldn't worry too much about password sniffing...the only time I've ever even heard of this working is at offices using old hub-based network equipment. You shouldn't have anything to worry about, unless you've got some really nosy sysadmins at your ISP...
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