I'm getting the exact same issue:

huntly@ubuntu-desktop:/usr/lib/desktopcouch$ python desktopcouch-service
Desktop CouchDB is not running; starting it. Removing stale, deceptive pid file.
Apache CouchDB has started, time to relax.
...waiting for couchdb to start...
Browse your desktop CouchDB at file:///home/huntly/.local/share/desktop-couch/couchdb.html
2010-03-20 17:33:24,008 - can't create/verify 'u/091/e1a/41350/sundaytestdb' couchdb.one.ubuntu.com:443  oauth={'consumer_secret': 'c_secret', 'token': 'my_token', 'consumer_key': 'ubuntuone', 'token_secret': 'mysectoken'}
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 212, in replicate
    oauth_tokens=target_oauth)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 196, in create_database
    oauth_tokens=oauth_tokens)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/records/server.py", line 55, in __init__
    server_class=server_class, oauth_tokens=oauth_tokens)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/records/server_base.py", line 121, in __init__
    if database not in self._server:
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 124, in __contains__
    self.resource.head(validate_dbname(name))
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 981, in head
    return self._request('HEAD', path, headers=headers, **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1035, in _request
    raise ServerError((status_code, error))
ServerError: (500, '')
2010-03-20 17:33:24,289 - can't replicate 'sundaytestdb'  'http://localhost:43578/' <== {'source': 'sundaytestdb', 'target': {'url': 'https://couchdb.one.ubuntu.com/u%2F091%2Fe1a%2F41350%2Fsundaytestdb', 'auth': {'oauth': {'consumer_secret': 'c_secret', 'token': 'my_token', 'consumer_key': 'ubuntuone', 'token_secret': 'mysectoken'}}}}
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 252, in replicate
    content=record)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 985, in post
    **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1029, in _request
    raise ResourceNotFound(error)
ResourceNotFound: ('db_not_found', 'could not open https://couchdb.one.ubuntu.com/u%2F091%2Fe1a%2F41350%2Fsundaytestdb/')
2010-03-20 17:33:24,726 - can't create/verify 'u/091/e1a/41350/mytestdatabase' couchdb.one.ubuntu.com:443  oauth={'consumer_secret': 'c_secret', 'token': 'my_token', 'consumer_key': 'ubuntuone', 'token_secret': 'mysectoken'}
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 212, in replicate
    oauth_tokens=target_oauth)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 196, in create_database
    oauth_tokens=oauth_tokens)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/records/server.py", line 55, in __init__
    server_class=server_class, oauth_tokens=oauth_tokens)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/records/server_base.py", line 121, in __init__
    if database not in self._server:
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 124, in __contains__
    self.resource.head(validate_dbname(name))
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 981, in head
    return self._request('HEAD', path, headers=headers, **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1035, in _request
    raise ServerError((status_code, error))
ServerError: (500, '')
2010-03-20 17:33:24,878 - can't replicate 'mytestdatabase'  'http://localhost:43578/' <== {'source': 'mytestdatabase', 'target': {'url': 'https://couchdb.one.ubuntu.com/u%2F091%2Fe1a%2F41350%2Fmytestdatabase', 'auth': {'oauth': {'consumer_secret': 'c_secret', 'token': 'my_token', 'consumer_key': 'ubuntuone', 'token_secret': 'mysectoken'}}}}
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 252, in replicate
    content=record)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 985, in post
    **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1029, in _request
    raise ResourceNotFound(error)
ResourceNotFound: ('db_not_found', 'could not open https://couchdb.one.ubuntu.com/u%2F091%2Fe1a%2F41350%2Fmytestdatabase/')
2010-03-20 17:33:25,305 - can't create/verify 'u/091/e1a/41350/rbpodcaststore' couchdb.one.ubuntu.com:443  oauth={'consumer_secret': 'c_secret', 'token': 'my_token', 'consumer_key': 'ubuntuone', 'token_secret': 'mysectoken'}
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 212, in replicate
    oauth_tokens=target_oauth)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 196, in create_database
    oauth_tokens=oauth_tokens)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/records/server.py", line 55, in __init__
    server_class=server_class, oauth_tokens=oauth_tokens)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/records/server_base.py", line 121, in __init__
    if database not in self._server:
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 124, in __contains__
    self.resource.head(validate_dbname(name))
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 981, in head
    return self._request('HEAD', path, headers=headers, **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1035, in _request
    raise ServerError((status_code, error))
ServerError: (500, '')
2010-03-20 17:33:25,473 - can't replicate 'rbpodcaststore'  'http://localhost:43578/' <== {'source': 'rbpodcaststore', 'target': {'url': 'https://couchdb.one.ubuntu.com/u%2F091%2Fe1a%2F41350%2Frbpodcaststore', 'auth': {'oauth': {'consumer_secret': 'c_secret', 'token': 'my_token', 'consumer_key': 'ubuntuone', 'token_secret': 'mysectoken'}}}}
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 252, in replicate
    content=record)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 985, in post
    **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1029, in _request
    raise ResourceNotFound(error)
ResourceNotFound: ('db_not_found', 'could not open https://couchdb.one.ubuntu.com/u%2F091%2Fe1a%2F41350%2Frbpodcaststore/')
2010-03-20 17:33:25,900 - can't create/verify 'u/091/e1a/41350/jotty' couchdb.one.ubuntu.com:443  oauth={'consumer_secret': 'c_secret', 'token': 'my_token', 'consumer_key': 'ubuntuone', 'token_secret': 'mysectoken'}
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 212, in replicate
    oauth_tokens=target_oauth)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 196, in create_database
    oauth_tokens=oauth_tokens)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/records/server.py", line 55, in __init__
    server_class=server_class, oauth_tokens=oauth_tokens)
  File "/usr/lib/python2.6/dist-packages/desktopcouch/records/server_base.py", line 121, in __init__
    if database not in self._server:
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 124, in __contains__
    self.resource.head(validate_dbname(name))
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 981, in head
    return self._request('HEAD', path, headers=headers, **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1035, in _request
    raise ServerError((status_code, error))
ServerError: (500, '')
2010-03-20 17:33:26,045 - can't replicate 'jotty'  'http://localhost:43578/' <== {'source': 'jotty', 'target': {'url': 'https://couchdb.one.ubuntu.com/u%2F091%2Fe1a%2F41350%2Fjotty', 'auth': {'oauth': {'consumer_secret': 'c_secret', 'token': 'my_token', 'consumer_key': 'ubuntuone', 'token_secret': 'mysectoken'}}}}
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 252, in replicate
    content=record)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 985, in post
    **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1029, in _request
    raise ResourceNotFound(error)
ResourceNotFound: ('db_not_found', 'could not open https://couchdb.one.ubuntu.com/u%2F091%2Fe1a%2F41350%2Fjotty/')
2010-03-20 17:33:26,468 - replication of services aborted
Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/replication.py", line 178, in do_all_replication
    oauth_tokens=remote_oauth_data, service=True):
  File "/usr/lib/python2.6/dist-packages/desktopcouch/pair/couchdb_pairing/couchdb_io.py", line 115, in get_database_names_replicatable
    all_dbs = set([db_name for db_name in couchdb_server])
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 131, in __iter__
    resp, data = self.resource.get('_all_dbs')
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 978, in get
    return self._request('GET', path, headers=headers, **params)
  File "/usr/lib/pymodules/python2.6/couchdb/client.py", line 1035, in _request
    raise ServerError((status_code, error))
ServerError: (500, ('unknown_error', 'function_clause'))