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Wildcat, I'd recommend using the "send settings" button in OmniFocus for Mac's sync preferences, then sending the email that creates to an address you read on the phone. That button sends the settings the Mac is using over to the phone as a tappable link.

Open the email on the phone, and tap the link. OmniFocus will launch and offer to replace your current settings with the exact one the Mac is using.

It sounds like the settings on the iPad don't exactly match the ones the Mac is using. At the very least, it sounds like the iPad is syncing over http: instead of https: - the latter is an encrypted connection.

If that doesn't resolve the password prompts on the iPad, try opening this page in Safari on the iPad and tapping the "reset keychain" link, then entering your login info again.

Be especially careful about capitalization - "username" and "Username" are actually two different WebDAV accounts. The iOS keyboard sometimes gets trigger-happy with the shift key...