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I've been using DC between my Leopard G5 machine and my Snow Leopard MBP for a long time now and today it stopped in one direction — the G5 can't see the MBP though it works in reverse.
Using Bonjour Browser, I see lots of other connections, but under the "_dropcopy.-tcp. -1" entry, I only see the G5, but not the MBP. Not even manually entering the LAN IP Address will reach the other machine. At the same time, several other programs are seeing it — Pastebot, ShareTool, and Chronosync, for examples.
if other programs are seeing the MBP, and even direct transfers over IP are failing, then it sounds like DropCopy has crashed or hung on the MBP. Perhaps quitting and relaunching it in the Macbook will solve the problem? otherwise the port may be blocked or occupied by the crashed process (or another app) – in that case a restart of the MBP may be needed to reinitialize the TCP stack.
Unfortunately, that isn't it. I still get "no local destination for DropCopy" (which I normally use frequently to pass the clipboard back and forth). In the meantime, I'm using Dropbox, but that's slow by comparison to DropCopy.