XAMPP comes preloaded with the FileZilla FTP server. Here is how to setup the service, and create an account.
Enable the FileZilla FTP Service through the XAMPP Control Panel to make it startup automatically (check the checkbox next to filezilla to install the service). Then manually start the service.
Create an ftp account through the FileZilla Server Interface (its the essentially the filezilla control panel). There is a link to it Start Menu in XAMPP folder. Then go to Users->Add User->Stuff->Done.
Try connecting to the server (localhost, port 21).