Great news. I did more research and found a fix. I can CONFIRM this works on my Droid 1 using the Liquid Gingerbread ROM.
Easy to do, give it a try. Worked for me and I watched a few seconds of a Sopranos episode.
"Got it to work. Oddly enough you need to goto airplane mode.
Then repeatedly try to log in,
when it says there is no internet connection turn airplane mode off and again to repeatedly try to connect
It should eventually let you in.
Strange program but it works great on 3g or wifi. "
