you tried connecting again? maybe it was temporary dns issue?
open dos prompt and type
nslookup virgil.dreamhost.com
you should get something like
Code:
Non-authoritative answer:
Name: virgil.dreamhost.com
Address: 64.111.105.25
if you don't get that, then you have internet connection issues that are beyond flashfxp and downgrading to an older version won't solve your problem.