I have had problems with VMKpal today as well, but when I tried to log in the regular way it said the site was temporarily too busy. Usually when this happens I wait five minutes, try logging in again and if it still doesn't work I restart my computer.
So far, no problems after that but there is always room for firsts. We don't know when we'll be able to log in, looks like we'll just have ot wait it out
just an FYI - Pal does not connect to a server of any sort, it runs totally on your machine, so if "VMKPAL" is not working, then VMK is not working - all VMKPal does is "overlay" on top of Internet Explorer