FTP backup–cannot read local files

So I have a reasonable amount of web design experience but am new to WordPress and blog software in general. I have used Movable Type without much issue, though.

Anyway, I am trying to upgrade to the most current WP, for a site that I did not create, I’m just taking it over from now on. I downloaded all the old files via FTP, but before I actually upgrade I wanted to check the local files. And although they are all here, I cannot actually VIEW any of them the way I would normally view HTML files on my computer. Is that normal? According to the upgrade instruction page, I should be able to navigate the site normally through the local files.

I have tried to open various index.html pages, the main one and the various subfolders and none work (although actually when I go to the site: http://borderlinecollective.org and then try http://borderlinecollective.org/index.html that’s also giving me errors). I did download the .htaccess file but I got the message that the file would be hidden because it starts with a period. Is that the problem?