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Ok a bit more info. In my server logs I am seeing this:

[Tue Jul 22 18:55:45 2008] [error] [client ***********] (2)No such file or directory: An error occurred while opening a resource. [500, #0]
[Tue Jul 22 18:55:47 2008] [error] [client *************] Unable to PUT new contents for /********/OmniFocus.ofocus-copy-in-progress-pjE52UN-GXf/20080722042222=gFMG-6ceaJd+nhoT1gSRFAG.zip. [403, #0]

That repeats a whole bunch of times during the sync.

I'm running Apache 2.2 on FreeBSD.

=]

-Dave