[whpalmer4]

Somehow you've managed to put an old-format OmniFocus.ofocus file in Documents/OmniFocus.ofocus on your iDisk volume. The versions of OmniFocus for the iPhone and the desktop that understand syncing have a different file format than OmniFocus 1.0 for the desktop.

In the desktop program, check About OmniFocus to make sure you are running version 1.1 sneakypeek <something>. If you are not, there's your problem; quit the program, delete that version and download (and install) the right one from the OmniFocus product page (make sure you get the sneakypeek version!) Wouldn't hurt to do a Spotlight search to make sure you don't have an old 1.0 version floating around on your disk to avoid a repeat of this.

Figure out which of your two clients (phone and desktop) has the most up-to-date data.

Quit the program on the other client, and don't run it until you're done with this process. Next, rename the OmniFocus.ofocus file in the Documents folder of your iDisk to a different name, so that neither client attempts to access it. On the client that has the most up-to-date data, tell OmniFocus to do a sync again. This should work; if not, you'll need to report back with whatever errors you get. Once you get a successful sync, check on your iDisk and verify that the data file is there. Do a second sync, just to be sure. Now, you can go to the other client and start it up. Tell it to do a sync. You should get the "server or local" question after it realizes that the database on the server has changed in an unexpected way. Answer "server" to get that data copied over to your client. Then add a test project to your data and sync again. Go to the other client that had the most up-to-date data when you started, have it sync again, and verify that the test project shows up there.