[whpalmer4]

And if you point the Finder at that folder, what does it think the OmniFocus.ofocus file is? Can you do Show Package Contents on it from the contextual menu (select file, right or control-click to get the menu, select Show Package Contents if present)?

I would try removing that file and trying the sync operation again. If you get the same problem, perhaps your ISP's WebDAV implementation is not sufficiently adherent to the standard to be used with OmniFocus, or there's some configuration issue on the server end to be addressed. Do report back on either success or failure so that we know whether GoDaddy can be a workable sync solution or not.