Okay, I need to dumb this down. How do you do this in MobileMe?
 

Using OF 1.1 rev 2775.

Everything was syncing fine. Until it wasn't. Now I keep getting an error message:

Unable to read document.
No root transactions found in "https://idisk.mac.com/xxxx/Documents/OmniFocus.ofocus/".

So then I read that syncing in MobileMe was easier so I went there. But I think it's still looking in the prior director? Maybe?

Is there any set of instructions anywhere? I keep seeing that it's "really easy" in MobileMe. Oh really?

It looks like you have a copy of the 1.0 version of your OmniFocus.ofocus database on your MobileMe account, leaving OmniFocus 1.1 very confused. You can fix this by moving the old 1.0 database out of the way (by renaming it, moving it to a different folder, or just removing it).

Hope this helps!