Hi,

I'm trying to update some Drupal 7 modules and Drupal prompts me for a FTP password.

My usual system password doesn't work. Do I need to be running an FTP server?

Jack

I believe you need an FTP server. What OS are you running? You can also update modules manually.

Are you sure it's not asking for a database password? I suggest you change your system password just incase you sent that out across the internet. You don't need to be running an FTP server to download with FTP from the internet.

I find the easiest way to update drupal is with drush. http://drupal.org/project/drush. Once it's installed updates should be as easy as 'drush up'.

Doubt you need FTP. It usually asks that if there's something wrong with the permissions. Try making sure both nginx/apache and PHP have the appropriate permissions. I believe a common solution is to (temporary) set chmod 777 on the files.

Or you can use PHP-FPM and let PHP run with the permissions of the user running the website.

Wait a second. Are you trying to update custom modules or themes?