I used to buy my hosting from a shared provider and have went out on my own due to space constraints and am sharing a dedicated server with a friend for about the same price I was paying for hosting. My new server and my old host were both CPanel hosts. Here is the scoop.

I transferred the account from my old host (v 9.9.8-CURRENT 17) to my new server (9.9.8-RELEASE 119). After transferring, I have a wierd FTP account:

lgaXrdGpETxxqu/@mydomain.com (/bin/ftpsh)

I never created it and it appear after I used the WHM utility to transfer the account from one server to another.

The problem now is that I can't delete that account or add new ones. Is there a fix for this?

That sounds very strange. When you say you "transferred your account", what do you mean. Did you use the WHM utility to transfer your accounts only, or did you do something else to transfer?

Its the same on our server. Dont know why. I dont think you have to wory about it. :)
Drop note when you ll find out about this isue