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It seems there's a bit of an interoperability problem in there somewhere. It should work, but it doesn't (at least not for me). None of the Omni iPad apps seem to be able to connect via DropDAV, and neither can the Mac OS X 10.6.6 Finder. They do successfully connect to Omni's Sync Server, which is a standard WebDAV server. However, Pages on the iPad connects without difficulty to both DropDAV *and* the Omni Sync Server using the same credentials that fail from OmniGraffle. I've reported this problem at least once, but the more problem reports, the better, as far as getting it fixed. Use the Contact Omni menu entry under the Omni button menu to make a report that will get logged (a forum post won't).