I'm looking for a software that will connect to an ftp server and download a folder each and every day. The trick is when downloaded it should be stored in a folder on the local computer by date.

So today's download folder would be Mar28 and todays files would be in there.
Tomorrow's files would be in Mar29...etc.

Every week or so the files can be removed (this can be a maunal thing).

Anyone know of a free program that will do this?

The software you want is called shell scripting.

You schedule calls to a script that contains ftp commands, once the folder is downloaded, rename it to today's date.

Use Windows Scheduler, or cron to schedule the command. Use command-line ftp to transfer the call (your password will be stored in plain text BTW), and use date command to get today's date.