Hmm... I've got a brand new install on my travelling netbook (needed to test some other things...) and other than needing to register MSBIND.DLL and MSSTDFMT.DLL, it is working (and updating) fine; as far as I can tell, don't have FS on my netbook so can't go so far as to connect it to anything.
What AV/firewall software are you using? Might be worth turning it all off (including the Windows firewall) and trying again.
Failing that, only thing I can think to suggest is "nuke from orbit": De-register the above mentioned DLLs, de-install the FLogger, run an MS Update, re-install the FLogger, re-register the DLLs.