New and longer error message:
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] [WAR] 6a (lib/peer.php:183) file_get_contents(http://moodle.colne.essex.sch.uk) [function.file-get-contents]: failed to open stream: Connection timed out, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] Call stack (most recent first):, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * log_message("file_get_contents(http://moodle.colne.essex.sch.uk...", 8, true, true, "/htdocs/mahara/lib/peer.php", 183) at /htdocs/mahara/lib/errors.php:374, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * error(2, "file_get_contents(http://moodle.colne.essex.sch.uk...", "/htdocs/mahara/lib/peer.php", 183, array(size 6)) at Unknown:0, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * file_get_contents("http://moodle.colne.essex.sch.uk") at /htdocs/mahara/lib/peer.php:183, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * Peer->bootstrap("http://moodle.colne.essex.sch.uk", null, "moodle", "colne") at /htdocs/mahara/auth/xmlrpc/lib.php:833, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * PluginAuthXmlrpc::validate_config_options(array(size 19), object(Pieform)) at Unknown:0, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * call_user_func_array(array(size 2), array(size 2)) at /htdocs/mahara/lib/mahara.php:934, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * call_static_method("PluginAuthXmlrpc", "validate_config_options", array(size 19), object(Pieform)) at /htdocs/mahara/admin/users/addauthority.php:110, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * auth_config_validate(object(Pieform), array(size 19)) at Unknown:0, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * call_user_func_array("auth_config_validate", array(size 2)) at /htdocs/mahara/lib/pieforms/pieform.php:1200, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * Pieform->validate(array(size 19)) at /htdocs/mahara/lib/pieforms/pieform.php:410, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * Pieform->__construct(array(size 5)) at /htdocs/mahara/lib/pieforms/pieform.php:170, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * Pieform::process(array(size 5)) at /htdocs/mahara/lib/pieforms/pieform.php:71, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] * pieform(array(size 5)) at /htdocs/mahara/admin/users/addauthority.php:97, referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
[Thu Nov 27 13:14:05 2008] [error] [client 10.35.110.232] , referer: http://10.35.108.61/admin/users/addauthority.php?add=1&i=colne&p=xmlrpc
Is this a firewall issue or something? It just doesn't seem to want to communicate with moodle.