mysqldump -u root -p --all-databases | gzip -9 | ruby cfbackup.rb --pipe_data --container backups:mysql_backup.sql.gzHave you tried pulling or deleting files to see if those are also dysfunctional? If you're not averse to getting your hands a little dirty I would try establishing a connection directly with cURL to rule out any ruby library issues. The Cloud Files developer documentation contains some samples around page 38. If you do successfully get an auth token returned, start stepping through the other examples with cURL. Remember to swap out the URL given to you with the auth token with the snet-storage one.
The only response difference that I can see is X-Storage-Url which is https://storage.clouddrive.com/v1... on my end. I don't think I've ever gotten any other subdomain. I was told when I first wrote cfbackup (~3 months ago) that they were eventually going to return the internal/external URL as part of the authentication, but I don't know if that has actually happened yet.
I would definitely start barking up some trees. While support is only marginally better than Amazon's (virtually nonexistent) I can at least say that S3 worked reliably. If we could get free transfer with S3 I'd switch back.