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The files will be downloaded to a local (not virtual) directory.
Right-click on the wanted project or directory and select "FTP Checkout..." to publish your files.
When executed, a dialog box will appear asking where and how the files should be published :
The server's folders structure is replicated locally, making the project's root match the FTP server's configured root path.
You can change the relative path if you want to publish your files somewhere else in the server. This path is relative to the root path.
Click on the "..." button next to the relative path field to browse for the folder :
You can now click on OK to start downloading the files from the server. The files are being downloaded in the background, so you can continue working.
A task will be added to the Tasks Progress dock, click on details to show detailed progress :
You can download files and folders from your (S)FTP server by dragging them to a folder in the Solution Explorer: