Failure to Connect appears when trying to upload photos to Picasa Web Albums.
Please refer to the following when this symptom occurs:
Configure the Internet Explorer (IE) settings
1. Log in to Picasa Web Albums (http://picasaweb.google.com/) with IE.
Note: Users will be prompted to accept the Terms of Service when loggin in to PWA for the first time -- this must be done before images can be uploaded through the Picasa desktop program.
2. In IE, go to Tools > Internet Options.
3. Select Connections > LAN Settings and change the Automatically Detect Settings option. (If it's select, deselect it. If it's not selected, then select the option.)
Check the firewall settings
Please visit http://picasa.google.com/support for further support information.