I've encountered the connection error too. I've updated to wazapp-28082012-1105 about ten hours ago and it worked flawlessly. Then about 4 hours ago it was disconnected. Initially I thought it was due to changing from Wifi to 3G, but... Tried uninstalling and installing. Still doesn't work. Then tried removing account and reinstalling. When I reregistered my Whatsapp account, the feared 'failed too many' reply came. Tried the 'panic' button, seems to be able to create account but still problem connecting to Whatsapp server. I guess have to wait it out or try to login to whatsapp on another platform.