Fogbugz OnDemand error

Fogbugz On Demand is showing an error from Balsamiq:

10/10/2009 1:18 AM (GMT-04:00):
System.Security.SecurityException: Request for the permission of type 'System.Net.WebPermission, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089' failed.

Server stack trace:
at System.Security.CodeAccessSecurityEngine.Check(Object demand, StackCrawlMark& stackMark, Boolean isPermSet)
at System.Security.CodeAccessPermission.Demand()
at System.Net.HttpWebRequest..ctor(Uri uri, ServicePoint servicePoint)
at System.Net.HttpRequestCreator.Create(Uri Uri)
at System.Net.WebRequest.Create(Uri requestUri, Boolean useUriBase)
at System.Xml.XmlDownloadManager.GetNonFileStream(Uri uri, ICredentials credentials)
at System.Xml.XmlUrlResolver.GetEntity(Uri absoluteUri, String role, Type ofObjectToReturn)
at System.Xml.XmlTextReaderImpl.OpenStream(Uri uri)
at System.Xml.XmlTextReaderImpl.DtdParserProxy_PushExternalSubset(String systemId, String publicId)
at System.Xml.DtdParser.ParseExternalSubset()
at System.Xml.DtdParser.Parse(Boolean saveInternalSubset)
at System.Xml.XmlTextReaderImpl.ParseDoctypeDecl()
at System.Xml.XmlTextReaderImpl.ParseDocumentContent()
at System.Xml.XmlLoader.Load(XmlDocument doc, XmlReader reader, Boolean preserveWhitespace)
at System.Xml.XmlDocument.Load(XmlReader reader)
at System.Xml.XmlDocument.LoadXml(String xml)
at MockupsFogBugz.LicenseManagerHosted.updateUserDataFromSpreedly(String& spreedlyUserToken, Boolean& recurringPlan)
at MockupsFogBugz.MockupsFogBugz.DailyTask()
at System.Runtime.Remoting.Messaging.StackBuilderSink._PrivateProcessMessage(IntPtr md, Object[] args, Object server, Int32 methodPtr, Boolean fExecuteInContext, Object[]& outArgs)
at System.Runtime.Remoting.Messaging.StackBuilderSink.SyncProcessMessage(IMessage msg, Int32 methodPtr, Boolean fExecuteInContext)

Exception rethrown at [0]:
at System.Runtime.Remoting.Proxies.RealProxy.HandleReturnMessage(IMessage reqMsg, IMessage retMsg)
at System.Runtime.Remoting.Proxies.RealProxy.PrivateInvoke(MessageData& msgData, Int32 type)
at FogCreek.FogBugz.Plugins.Interfaces.IPluginDailyTask.DailyTask()
at FogCreek.FogBugz.CDailyTask.PluginDailyTasks() in c:\src-hosted\fogcreek\fogbugz\src-Website\CDailyTask.was:line 123
The action that failed was:
Demand
The type of the first permission that failed was:
System.Net.WebPermission
The first permission that failed was:
<ipermission class="System.Net.WebPermission, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089">
<connectaccess>
<uri>
</uri></connectaccess>
</ipermission>

The demand was for:
<ipermission class="System.Net.WebPermission, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089">
<connectaccess>
<uri>
</uri></connectaccess>
</ipermission>

The granted set of the failing assembly was:
<permissionset class="System.Security.PermissionSet">
<ipermission class="System.Security.Permissions.SecurityPermission, mscorlib, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089">
</ipermission><ipermission class="System.Web.AspNetHostingPermission, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089">
<ipermission class="System.Net.WebPermission, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089">
<connectaccess>
<uri>
</uri></connectaccess>
</ipermission>
</ipermission></permissionset>

The assembly or AppDomain that failed was:
MockupsFogBugz, Version=1.6.29.0, Culture=neutral, PublicKeyToken=null
The method that caused the failure was:
Boolean updateUserDataFromSpreedly(System.String ByRef, Boolean ByRef)
The Zone of the assembly that failed was:
MyComputer
The Url of the assembly that failed was:
ms-internal-microsoft-asp-net-webhost-20