I've never seen that error. Have you posted this in the Business Catalyst Forum?
@chjade & Nancy: There has been a steep increase in the number of users facing trouble with BC module within DW. This has been reported to the Engineering team and they said they're working on a fix for this. I think this is 'one of its kind' but lot of them are seeing no errors whatsoever, but are unable to use BC functionality.
Well I used to see no errors, it just wouldn't connect. I'd see a dialog box flash real quick then nothing would happen. I can't import sites from BC either.
It works fine from my home computer, however.