I cannot logon to ebay through the standalone program. I get message: Password or Connection Error. But I can logon to ebay properly through a webpage using my user and password.

I have myibay.exe allowed through my firewall.

Hello and welcome to our forums.

Seems like your firewall is not allowing to go through anyway.
The best way to check is to disable firewall temporary and try it.
Some firewalls require a full path to the executable, not just a file name.
If you could give me the name of your firewall so I can check.

You can also run Diagnostic menu (Options - Settings - Diagnostic - Network Test) and put the output here (just remove IP) so I can tell what is exactly wrong.
Thanks.