I just installed mine on HTC Desire and ran it 'offline'. I am not at home to test it properly but I suspect the application is trying indefinitely to connect to my Mede8er and then just hangs.
Could you add a check to see if you are on the local wireless LAN and only connect then? If you have an Internet IP/hostname going through a firewall this wouldn't be a problem. I am suggesting that the APP looks at the local LAN first, then the Internet and if it still can't connect within 'reasonable time' give an error and exits.
I am however very keen on the performance and will be testing it tonight. My Web access, using IE, is very slow and doesn't work very well to Mede8er. Firefox is a lot better.
Ingo