I have just setup the CVS version 0.8.91-20040626 to test this file transfer feature of Jabber and MSN but it didn't work very well. I tested it with a friend with the same configuration, also the CVS version and all.
We both get the message normally if we want to accept the file being transfered or not, and its filename and destination. We confirm that we want to, but nothing happens. And the person that sent the file gets a message saying "the user rejected the request", what isn't true.
It happens both with Jabber and MSN, we tried each separetely. That is, I get the filename but it doesn't save in my home directory, although I have full permission on it, obviously.
I guess this shouldn't happen since these features are available since April, so any help would be highly appreciated.