Trigger Firing Multiple Stored Procedure

DESCRIPTION: I have an FTP server set up to log via ODBC into a table FTPLog. The trigger on table FTPLog fires when new files are received to process and load the file via a stored procedure.

CREATE TRIGGER tr_new_file ON FTPLog
AFTER INSERT
AS
SET NOCOUNT ON
DECLARE @filename varchar(50), @logtime datetime
DECLARE c1 CURSOR
FOR SELECT filename, logtime
FROM inserted
OPEN c1
FETCH NEXT FROM c1
INTO @filename, @logtime
WHILE @@fetch_status = 0
BEGIN
EXEC sp1 @filename, @logtime
FETCH NEXT FROM c_inserted
INTO @filename, @logtime
END
CLOSE c1
DEALLOCATE c1
END

PROBLEM: There are multiple problems with this setup. The first problem is that when the stored procedure gets executed it takes a long time to process the file and the FTP server never returned a completion code to the ftp client and ended with a connection time out from the client. My users keep asking if the FTP failed but it didnt fail. The server returned a completion code too late.

PROBLEM2: When multiple files are ftp to the server on the same session, only the first one gets process. Even though my code loops through all the records because the processing takes a long time the second one never gets executed. If I replace the EXEC sp1 statement with a PRINT statement then it's working fine.

SOLUTIONS and SUGGESTIONS highly appreciated.