I added the above proc and waited. No emails came. I compared the output file to the SMAT file and 9 out of 321 messages were missing. Just for kicks I ran these 9 messages through the route tester and they all showed they would have been sent.
I guess my question now is when using protocol fileset-FTP, since no ACK messages comes back from a recieving application, how does the engine know if the message was successfully written on the other end?