On Windows iFolder 3.2.5347.1 clients cannot handle windows usernames
that contains charters outside ISO 8859 US ASCII.

Modify simias.config line <setting name="WebServiceUri"
value="http://127.0.0.1:4974/simias10/XXX" />
Replace XXX that represents the username with allowed characters between
A-Z, 0-9 will fix the problem.