Actually i tried using response="responsecode-ignore" which is equivalent to the option you gave...
So now, if there is nothing, it wouldnt try to parse.
But we still have the problem of getting a success code "200" from the ftp server.
After changing it to response="responsecode-ignore" i also tried to give an incorrect host name, and it came back with
<?xml version="1.0" encoding="UTF-8"?>
<FTP xmlns:date="
http://exslt.org/dates-and-times" xmlns:soap="
http://schemas.xmlsoap.org/soap/envelope/"><RESPONSE><url-open><statuscode>6</statuscode></url-op
en></RESPONSE></FTP>
I have no idea, what 6 means in terms of status code.
If there is a list somewhere about these codes returned from url-open, life would be easy.

Appreciate your help in getting this resolved.