Finally got my backup started again one day after i posted my rant.
Speed is still limited when i asked they said it if i wanted faster you have to upgrade to Mozy PRO 
sadness.
You would think they would want you to upgrade as fast as you can so you will put less of a sustained load on their server.
They also credited me for a months worth of service Thank you mozy.
12-10-08 ME
I have been Getting MozyServerError 6 for at least a week or more I have tried Uninstalling Mozy.
I have Tried Clearing all of the tempfolders on my computer I have tried removing all entrys in the registry referring to mozy (this was done before reinstalling mozy) It encodes about 80mbs and thens sits and says communication with servers, I have left it alone for a full day , and no further back up happens I have Windows Vista I have tried disabling firewall, no difference I have tried direct connection to internet no router in between.
I have tried disabling antivirus software. All of the things I have tried I reboot and then test after a cold start.
Please help
RESPONSE
12-23-08 from Randy Burke at MOZY
Is this a new install?
From the look of the log, you may need to uninstall mozy then right click on the installer and select run as Admin
Department: MozyHome – Windows
Priority: Low
*******************************************love the LOW RATING makes me feel so special
Status: Assigned
*******************************************WAIT did he just ask me to uninstall and reinstall guess what I sent them meant nothing.BUT OKAY ill bite I did what he said about uninstalling and installing as admin (even thought that’s how I always had done it.)
Much More Click more to get the rest
I have been getting the mozyservererror6 and everytime i email support i get an answer for someother problem and not mozyservererro6
Come on really is this that hard for them to see that for some reason the server is responding that the account is in use and it is something on there side they need to fix and not my side. I am about to cancel my service and just stick with carbonite, for all its slower speed carbonite has not stopped backing up and has been done a few times over while mozy is now falling 60gbs behind on what data needs to be backed up, (sorry run on sentence will fix later) just venting now i will attach all the response to fix the problem later as well that i have been getting from support.