I have an update. Okay, so after figuring the issue I am having is related to the issue with connecting to the fTP working properly. I was able to determine that I can import using 'Local' drop folder vs. FTP. I am still having a permission issue so that Kaltura can delete the file after it is copied. Here is the 'kaltlog' when using the drop folder on 'localhost'.
2016-03-19 13:15:16 [0.000368] [107.152.128.122] [499582875] [765] [API] [KalturaStatement->execute] DEBUG: Sql took - 0.00026416778564453 sec onds
2016-03-19 13:15:16 [0.000223] [107.152.128.122] [499582875] [766] [API] [kBatchManager::createFlavorAsset] ERR: exception 'Exception' with me ssage 'Flavor [7] is none-comply' in /opt/kaltura/app/infra/log/KalturaLog.php:83
Stack trace:
#0 /opt/kaltura/app/alpha/apps/kaltura/lib/batch2/kBatchManager.php(88): KalturaLog::err('Flavor [7] is n...')
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2016-03-19 13:17:11 [0.036253] [107.152.128.122] [608419247] [173] [API] [KalturaFrontController->errorHandler] WARN: /opt/kaltura/app/infra/storage/kFile.class.php line 402 - unlink(/home/vod_import/1057.mp4): Permission denied
2016-03-19 13:17:11 [0.000210] [107.152.128.122] [608419247] [174] [API] [kFile::copySingleFile] ERR: exception 'Exception' with message 'Failed to delete source file : [/home/vod_import/1057.mp4]' in /opt/kaltura/app/infra/log/KalturaLog.php:83
Stack trace:
#0 /opt/kaltura/app/infra/storage/kFile.class.php(403): KalturaLog::err('Failed to delet...')
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I will try SFTP next and see if that works vs normal FTP. What are the proper permissions for the local drop folder suppose to be exactly. I changed them to kaltura:kaltura but I have not tested it.