...from the Knowledge Base
The local side can be returned by doing the following:
Click options at the top of the screen (or Tools > Options).
Choose the General category from the left.
The third option on the right should be entitled "Auto Reconnect". If the auto-reconnect option is set for "open with last local and remote folders", change it to "Open Blank Workspace", click OK.
Now close and re-open the program.
The local window should return. If so, change the auto reconnect back to "open last local and remote" (or to whatever setting you desire).
** Note: This only applies to WS_FTP Home. WS_FTP Professional has a "New Local View" button in the toolbar that can be used to open a "My Computer" pane on the left. **
View original documentation here at http://ipswitchft.custhelp.com/app/answers/detail/a_id/615/kw/lost%20local%20folders/p/82/r_id/166/sno/1