"ftp" and "www" are just conventions. There is no requirement that you use these names. You can create an A record for "www" and run and FTP server on that machine, and create an A record for "ftp" and run a web server on it, and the DNS system doesn't care.
More commonly, sites run a web server and FTP server on the same machine, and create either an A record or CNAME record just to satisfy those who insist on sticking "ftp" in front when connecting to an FTP server.
Anyway, what you want to do is as easy as this:
ftp IN A 1.2.3.4
www IN A 1.2.3.5
One last bit of confusion.
Domain registrar.
Web server host 1
web server host 2
On the site I registered my domains with, I have set up the nameservers to point to this Host 1.
If I want the FTP to stay on host 1 but the web server on host 2, does it matter where I change the DNS settings?
I'm assuming I can leave the nameservers pointing to host 1 but then change the DNS on host 1 to say that the web server is at the IP address on host 2?
Generally not considered a good idea, for a number of reasons.
First of all, you are REQUIRED to have at least two nameservers. Where is the other one? I hope you don't have them both pointed to the same IP address?
It is RECOMMENDED (but not required) that your (minimum) two nameservers be geographically-dispersed. In different cities. Let alone in the same: building, rack cabinet, or computer.
While I'm not keen on using the default nameservers provided by most registrars, I think this is usually preferable to running your own nameservers, as this will almost always meet the geographic recommendation.
(My own preference is to use a third-party nameservers. These are available at low cost or even free for a limited number of domains.)
In any case, there should be no ambiguity about where you should make changes to A records: you make them to your origin nameserver.
You have ONE nameserver which is your "origin" nameserver. Generally, any additional nameserver get their data from this origin nameserver, by doing a "zone transfer".
You usually don't have to worry about this, though, as it's all handled transparently to you. You go to a website associated with whomever you have your nameservers (whether it's your registrar or a third party) and you use a web interface to change your A records, etc. They worry about origin servers and zone transfer and the like without bothering you with these details.
It sounds, though, as if you've elected to run your own name server. As long as you go that route, I'm afraid you DO have to worry about such things.
First thing, use a whois tool to look-up your whois record. There will be two or more nameservers listed there. Those are your nameservers, regardless of what you might THINK they are. :)
If you are running your own, now you care which one is the origin server. Use an nslookup tool to look up your SOA record. You will see a line similar to "origin=ns.example.com"
This is your origin name server. This is the one and only place where changes you make to your records will be effective.
I think your confusion as to where to make the change is due to the fact that many registrars do not have clear user interfaces. Also, there may be some coercive misdirection involved. They would like for you to purchase additional services from them - email, web hosting, etc. (They generally provide nameservers for free, though.) They will give you all sorts of BS warnings about the dire consequences of switching your nameservers away from them. And, even once you do, the user interface may still be there where you can create and modify records. Records that have absolutely no meaning if you are not using their name servers! Once you have switched your nameservers away to another place, they should just blank out that part of the user interface, until/unless you switch the nameservers back to them.
In case you are now throughly confused - from my understanding of your current setup, you create you A records on your computer that is currently acting as your nameserver. Any A records you create at your registrar are completely irrelevant and will have no effect, as long as you have the nameservers set to point to your machine.