This is not a regression bug.This is existing in 3.0.1
FTP setup should be done. (http://appcelerator.testlodge.com/projects/1313/test_plans/3057)
Connection Manager should have a FTP connection.
1.Create a Titanium Project and link the FTP connection from above.
2.In Project Explorer, open the Connections node of the project with the FTP connection.
3.Launch Connection window by doing double click on the FTP connection listed in the project's connections node (Project > connection > connection site)
4.Transfer any file from SOURCE to DESTINATION and cancel it in between.An error prompt will appear (which also look strange).
5.Select "Continue " tab.
As per the tab says "continue " transfer of files should continue.
Transmission of files get cancelled after pressing "continue".