If the server status is still "Unknown" then the last thing I want you to try is delete this server and add it again with the right information. There is a known issue with editing the server which might also be the reason you are not able to see the updated status. -Bhakti Pingale
That seemed to be the problem. Its now running! Thanks Bhakti!
Fyi, I deleted my only server setting in CFBuilder, and then added a new server with a different server name and description.
And, for whoever cares, my Coldfusion Builder's 'About Adobe Coldfusion Builder' window has the following:
Build date: 04 July 2009, 12:15:11