I was reading another thread regarding this. In bordermanager setup I have
ftp proxy enabled, configured as follows:

Username/Password separator: $
Anonymous FTP Email address: NovellProxyCache@
User authentication: Single Sign On

When I try to connect in command line I get an error as follows:

C:\>ftp myproxyserver
Connected to myproxyserver.
220 Service Ready
User (myproxyserver:(none)): myuser.mycontext$externalftp.com
530 Access Denied by Novell Border Manager:Access Control failure
Connection closed by remote host.

What am I doing wrong?