I also have this exact issue. I have confirmed that Firewall is turned off, and I am trying to access the CRM server from inside the network to no avail. It does see the organization when I put in the https://<Address> but when I attempt to go forward
with the account configuration it fails with the error message that It cant communicate with the server. I can get to the site fine via web.
I have also uninstalled all of the Windows Live tools.
Thanks!