ScribeFire error: Server returned malformed response

OK, I had scribefire up and running on Firefox 3 with my own WordPress blog running on ver 2.5.1. After I upgraded to 2.6 and also created a new administrator user (in order to delete the default admin user for security purposes), I was not able to update settings for scribefire.

I did set the toggle to allow xmlrpc, but still no dice.

Am I missing something obvious, or even not so obvious???