Yes, the plugin uses the jquery.cycle.js plugin (jquery.malsup.com/cycle/) for the animations.
The jquery plugin is very easy to modify and has a lot of customizable options.
View the options here (jquery.cycle options).
To start, find the “testimonial-rotator.php” and edit line 389 adding/editing the options you want. You can add paging or next/prev buttons but you will need to create the elements somewhere in the content (i.e. in the post where the rotator is).
If you’re still looking to enable FTP locally, you may want to check out this link on TUAW (The Unofficial Apple Weblog).
How To Enable The FTP Server In Lion
They reference a couple of tools for enabling/managing that FTP setting. For convenience, I will link the tool that I use and have found to be very handy for other things in OSX as well.
tweaksapp