I just installed PocketCloud on my iPhone 3GS with iOS 4.2.1. Installed Windows Companion (v 2.1.5) on my home computer running XP Home, service pack 3. Also installed TightVNC Service. Connection method is Auto Discovery. On my iPhone my remote home PC is "Discovered Connection [On]" but when I try to connect, after entering my password on the iPhone, I receive an error on the phone ("Could not connect to server.") and I receive a Runtime error on my home PC ("Program: ...yse\PocketCloud Windows Companion\PocketCloudService.exe This application has requested the Runtime to terminate it in an unusual way. Please contact the application's support team for more information."). The VNC server on my home PC is configured to accept loopback connections. PocketCloud diagnostics all checked out on home PC. One further note: on my home PC when I right click the Windows Companion and open the Auto Discovery Settings window, the window does not open completely. i was able to enter my google email address and password but the rest of the window is cut off and not expandable.
The companion box being too small is a known issue that we are trying to resolve.
I don't have any ideas on the runtime error. Is there a specific error code associated with it? Can you take a screenshot and upload it here? In the meantime I would suggest that you add a manual VNC connection from the PocketCloud App and connect that way to avoid routing through the PocketCloud Companion.