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I believe that's probably what the problem is:

"In my tests, OmniFocus was not able to communicate with the server with the Digest authentication scheme."

It would be absolutely terrific if omni could look into that... because I don't think changing the authentication scheme is available on most online solutions...

I for one feel the opposite as most people it seems... I'd much prefer have all my stuff stored in the cloud than on my home computer...

Also, another problem with OF handling of webDAV is that if you try to use SSL and the certificate is "not valid" OF doesn't give you an option to say "yes, I want to use it anyway" it just throws a "bad certificate" error at you.

thanks!