Code:
2009-02-04 10:27:22 Networking: using port [58362].
2009-02-04 10:27:22 Networking: Connection Established [1]
2009-02-04 10:27:23 WorldAuthenticate: Initiating Login.
2009-02-04 10:27:25 WorldAuthenticate: connection lost during authentication.
2009-02-04 10:27:25
2009-02-04 10:27:26 Rejected By World. retrying
2009-02-04 10:27:26
2009-02-04 10:27:26 Networking: Connection Established [2]
2009-02-04 10:27:29 WorldAuthenticate: Initiating Login.
2009-02-04 10:27:59 Networking: Connection Closed [1] with 0 pending bytes.
2009-02-04 10:27:59 *** ERROR: WorldAuthenticate. My message arrival was NULL, the net has been shutdown.
2009-02-04 10:27:59 *** WorldAuthenticate. Checkpoint 3.
Judging by these logs, it looks like your problem is with connecting to that particular server. Have you tried any other servers? Maybe you are IP blocked or they are having a problem that is blocking you. Try another server and see what happens. I know they use IP Limiting, so if someone else from your household is playing there while you are trying to connect, it will block you from getting on. I think TZ/VZ limits to 2 connections per IP (household).
If that isn't the case, then you need to make 100% sure that your version of Titanium is correct and that you did not patch even the littlest bit!