> Are there better code examples out there that I could make use of?

The ICS FTP client and server do this using One Time Passwords which is
an internet standard, you can borrow the code from them, specifically the
unit OverbyteIcsOneTimePw.pas and the demo program for it,
OverbyteIcsOneTimePassword.   There is an explantion of the handshaking
at the top of the unit. 

Angus
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