Quick Microblog today on a common problem – Magento Connect issues. This specific problem involves the error:
Cannot chdir after login to: /httpdocs/shop
We encountered this issue because we had renamed our Magento folder from “Shop” to “Services”. To remedy this you simply need to rename/delete the file connect.cfg within your Magento /downloader folder.
Removing this will force Magento Connect to load it’s default settings – this should at least bring up your Magento connect page for you to enter new FTP information.
If you’re still encountering issues and Magento connect is not accepting your FTP credentials then just make sure your /downloader folder’s permissions are set to 777 then hopefully you’ll be able to select “Local Filesystem” as an option.