The file syncing process appears to have stalled. When I upgraded from 11.04 to 11.10 my system stopped working, and so I reinstalled 11.04. I then copied some of my files into the same folders that they are in in Ubuntu One (so, I copied the same music that is in music/coldplay stored in ubuntu one into the same folder on my desktop, to save bandwidth and time). At first, files started syncing normally. However, now, all I see in my Ubuntu One Control Panel is the above message. Furthermore, when I try to check the tickbox next to a cloud folder that is not yet ticked, everything grays out. Please help!
Do you know for sure it's stalled? I read in this forums that Ubuntu One is too slow for syncing (e.g., compared to dropbox) and even tried to sync my files yesterday but couldn't made it in several hours (approx 150 MB), so I had to cancel.
In my attempt to use Ubuntu One I also erased a folder I had online with a few files, but the changed didn't apply in my desktop app until a couple of hours later. What you are experiencing may be due to this speed issue.