FTP is short for File Transfer Protocol, the protocol for exchanging files over the Internet. FTP works in the same way as HTTP for transferring Web pages from a server to a user's browser and SMTP for transferring electronic mail across the Internet in that, like these technologies, FTP uses the Internet's TCP/IP protocols to enable data transfer.

FTP is most commonly used to download a file from a server using the Internet or to upload a file to a server (e.g., uploading a Web page file to a server).

If you choose to have a self hosted software install from wordpress.org and hire a web host then you will have to learn how to use FTP in order to upload themes. plugins. etc.

As I said above your blog is not a wordpress.org software install. If it was you would be paying for a web host and you aren't. Your blog is a wordpress.com blog on it's own domain that is being free hosted by wordpress.com and all the same rules in the wordpress.com TOS and policies apply to it now, just as as they did previous to your purchase of the domain.

(FYI: someone else set up my blog and told me it was self-hosted, so thanks for clearing that up. Now, to reading all the links provided above.)

Before Upgrading
The Domain Mapping Upgrade does not enable the permission to use advertising, any kind of prohibited code, or upload additional themes and plugins. With the upgrade, your blog will still be hosted here at WordPress.com, which means that you will not have FTP access to your files and must still abide by our Terms of Service accordingly.

Here are the kind of blogs that are welcome at wordpress.com and those that are not welcome: http://wordpress.com/types-of-blogs/ Read the section on affiliate marketing very carefully. If you don't make it you cannot advertise it or flog it fgrom a wordpress.com blog.

No, you cannot have paid ads.

If you make the products yourself, eg are an author, artist, etc, you can sell the products yourself on your blog via Paypal, but be aware that WP.com is not an effective site for ecommerce on a large scale.

You cannot sell anything made by someone else as far as I know, no matter how much you believe in the product.

Self-hosted is by definition NOT WordPress.com. I think you'd better review the differences.

Upgrades such as Custom CSS, domain mapping, etc, have no effect on the Terms of Service.

For a definitive answer, contact staff http://support.wordpress.com/contact

Can I place business-card size ads or line ads on a page designed only for ads?

If not, can I sell products and/or e-books on my blog through PayPal?

My blog is set up with WordPress self-hosting (.com) and mapping service. URL is inandaroundthegarden.net.