Tom,

I have the same problem. I still have Mobile Me except every time I try to login from the iPhone it completely doesn't work. I've entered my password how many times now (too many) - I'm absolutely sure it's the right one (I've logged out and in to the Web site for Mobile Me).

No luck.

Originally I tried Bonjour - also no luck. Same error message. It might be linked to the fact that my wireless still doesn't work (of all the things Apple truly screwed me on that).

The other sync options just aren't going to work for me.

There was an option of using Sharemation Xythos as the external (I think free) online sync service (http://www.sharemation.com/xythoswfs/) except it's a beta so I don't know how long that's going to be around. If anyone knows any similar free service that'd be fantastic.