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Hi All,
I have the same problem here too. I turned off my Idisk syncing and moved my OF folder from my Mobile Me site. Since I then had no back up of OF on MobileMe, my OF synced from my computer. Same error on my iPhone but after the new back up was done on Mobil Me, I was able to sync my iPhone. Both are working...for now!

I turned my iDisk syncing back on and again had the conflict where it wouldn't do a back up (the plan did not include OF backups; figured they were already backed up on MobileMe?) Because I've already spent way too much time trying to muddle through this "conflict/error", I just turned off my automatically scheduled backup program. Added making a new "plan" to see if that will work on my OF do list! Wondering if I even need an auto backup scheduled since I have Time Capsule that does a total back up of my computer throughout the day?

Gotta say... I REALLY like Omni Focus and have been using it since the app appeared on the App Store from the beginning. Felt the whole GTD thing was worthwhile and bought a license for my desktop computer; great having my "lists" at home and when away via my iPhone!! But these conflicts are quite trying for someone who just wants to use the program for personal productivity and not have to learn all the in's and out's of programming, bugs, conflicts, etc. Recently got home from a 10 day trip. Yep, you guessed it! My OF would not work; something had expired? Had to download the latest SneakyPeek and my data was available again. But then the SneakyPeek update a couple of days ago made the whole program die! That was fixed again downloading that fix and up and running again. Got tired of searching forums trying to figure out what my problems were and decided to join the forum to add my input. Wow... Another user name/password to remember!

Just my $.02. I just want the program to work!!