AH! Thank you JhankG!!! Saved my life.
Had the problem for a couple days and JhankG's tip fixed it. Is there any word on why this happens and if a fix/update to the android Gmail app is in the works? This is unacceptable for a built-in app made by Google for on OS developed by Google for a service provided by Google.
Here is what all of you need to do:
1) Go into the settings menu for the phone
2) Choose applications
3) Choose Manage Applications
4) Under Manage Applications set the Filter to ALL. Not sure why this isn't the default but c'est la vie.
5) Scroll down and choose GMail Storage
6) Tap the button for Clear Data
I was getting the no connection problem and this fixed everything for me.
I don't understand how to do what you have explained.