I believe it does! Note, though, that ArmA 2 FTP is -just- Arma 2 content, right, which means you can't play CO (Operation Arrowhead) stuff. Currently the community almost requires Combined Operations (Arma 2 + OA) for most its missions, but it's always possible to find Arma 2-only missions, I suppose!
Anyway, go for it (downloading and playing + making): if it catches your fancy, why not purchase the full games
Wolfrug out.