This sounds like you have a firewall or other security software blocking the flight logger. Please take a look and make sure that the flight logger is being given permission to connect to the internet.
**EDIT** Your firewall may also be stopping the intial contact through timing out even if the Flogger is allowed to connect. After you get the error message, click OK and then when the program starts, try pressing the "UPDATE" button to try reconnecting after the program has started.
Cheers,
Phil