I'm having the same problem. I set up access to my Blogger account. It can see the two blogs in my account. But I can't POST TO DRAFT, PUBLISH or POST AND PUBLISH. Each time I get a little pop-up window with a red "X" and "Unknown." I can select MANAGE POSTS and it pulls up the last ten posts to the blog, so clearly it can get in to the account.
I am using the 30 day trial. I came to this product because I want to pay for something that works. I must say I'm stunned that publishing to Blogger is such a hassle.
When I go into MANAGE ACCOUNTS, it shows I'm using the BLOGGER DATA API, not the 'old' version. Note that none of the setting are configured (HOST, PAGE, PORT). When I click on CONFIGURE PROXY, the AUTODETECT radio button is selected (the recommended option).
Help... I want to pay for something that works.
steve