Is there a way to FTP files from one user to another directly over IP without having to create an FTP server? Can Lw be used as a end users FTp product?

One person is probably going to have to be running an FTP, Web, OpenNap or some other kind of server. You can also transfer files through ICQ, AIM or maybe other instant messaging clients. If you run a server, I recommend using a firewall or the settings built into the server to only allow the IP addresses of people you know and trust to connect to you and maybe password protect it too.