I've been playing with this for a while (trying to get an LAN ftp server working) with Home Premium....I've been told that it does work for Home, but I'm thinking "No, it doesn't".
Can I get IIS Manager (Internet Information Service) running? Yes. Create ftp sites? Yes. But I cannot log in.
This is the best step by step YouTube vid I'm come across (not literally you perverts

)
How to set home FTP Server in Windows 7 using IIS - YouTube
It all works just great for me, until I get to the PASSWORD, it just stops. Also under Computer Management I do not have the
"Local Users and Groups" option. This is confirmed to only come with Win7 Pro and Ultimate Editions.
Unless someone can prove me wrong, I've thinking Win7 Home's ftp is 'nurtured'.