hi 89breaker
I had a similar issue.. it turned out that it was an issue with my firewall/antivirus on my WiFi router. Be sure that you have allowed access to pairing.markspace.com. You can even try entering that in your Droid web browser 'pairing.markspace.com' and you should get the response 'Service OK'.
I've been using CompanionLink myself, it's been working great and doesn't require an app on my phone, it just runs on my PC and syncs with my Google account.