When I first got OmniFocus for my iPhone, I was having a lot of trouble with the WebDAV option. I set up an Apache DAV through my local network, and followed all the instructions provided,
http://manas.tungare.name/blog/2008/...cus-to-iphone/
--but to no avail. It would get part way through syncing and come up with an error message. There was also the concern that creating a local server when my laptop isn't on all the time would be a pain in the long haul.

I had signed up for the free trial of MobileMe to hold me over, but it's not really a good investment for me--I already have SugarSync for my shared files, and only really wanted the service for OmniFocus. I decided as a last ditch effort to sign up for free webDAV at sharemation.com, and downloaded Goliath to manage and view the account easily from my desktop.

Lo and behold, it works seamlessly. I've tested syncing from computer and iphone alike with test folders. I don't know if configuring my computer for Apache helped, or if the recent updates for OmniFocus Sneaky Peek did anything, but webDAV from sharemation is easy, fast to sync and free. I sound like an ad, but after all the headaches and worrying how I'd organize myself with no money after these trials ran out, it's really a relief.

Hope that helps anybody else with syncing troubles.