XEmacs 21.1.12 solved the package error fine, but there seem to be a
warning still:
(1) (error/warning) Error in process filter: (ftp-error FTP Error: CWD 550
/pub/gnu/xemacs/packages/package-index.LATEST.pgp/: Not a directory. failed: )
this show up in the "Save as" file dialog when selecting
Options->Manage Packages->Update package index.