FTP supports only plain text authentication - if you want to hide the password from attackers you have to use FTPS (FTP over SSL).
UPDATE
Don't care about hiding and obfuscating the password in your source code as a first step - your application will have to decrypt it and send it over the wire in plain text. Everyone can just start WireShark or any other packet sniffer and get the password back in plain text. First make sure that you don't send the password in plain text over a network, then start thinking about obfuscating it in your code.
UPDATE
Obfuscating the password in your code yields no security at all while you are sending it in plain text, but you can do so. Just encrypting the string adds one level of indirection. Without obfuscation I have to finde the password in your application and that's a matter of minutes with Reflector, with obfuscation I have to find the key, the encrypted password, and the encryption method. This will probably still take only minutes.
Using an obfuscator to prevent me from decompiling you application (into readable code) might stop me for a few hours until I find the relevant call into a system library function (but I wouldn't try, but only read the password from the wire ;).
So I suggest not to try to hard to obfuscate the password - the average user is probably unable to find a plain text password in a executable and people willing to find the password cannot be stopped by obfuscation. In this case the only way would be not to include the password in your application in the first place.