Windows Live Photo Gallery plugin problems

I recently installed ZenPhoto and have had no problems uploading via the web....however, the Windows Live Photo Gallery plugin refuses to upload. When I test the connection, it only says "Connection Unsuccessful" and when I try to publish it says "Invalid username or password", even though I am using perfectly valid login/passwords and the URL I'm using is http://www.mysite.com/zenphoto, where I installed it.

My gallery is hosted on GoDaddy, and these are the only warning messages I have in setup.php :
PHP magic_quotes_gpc [is enabled]

PHP mbstring package [is not present]

Strict Permissions [is not in effect]

Zenphoto core files [Some files are missing or their filemtimes seem out of variance]
Warning!
Perhaps there was a problem with the upload. You should check the following files:
.htaccess

.htaccess file [is empty or does not exist]

...I have mod_rewrite disabled, so I don't have a .htaccess file in there at all (the site and plugin weren't working correctly with it enabled anyway)

Has anyone run into a similar problem? Is there some setting in ZenPhoto itself I am missing?
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