i am having the exact same problem. do you guys have your WP install in a different directory from your apache root directory like i do? maybe it has something to do with the way WP 2.7 handles this…
just throwing it out there.
this appears to be a problem with the API key that is managed by wordpress.com you have to ask their technical support to remove the duplicate entry. the problem is when they delete that entry, their database thinks you no longer have access to your own blog stats! i believe this is a known issue by both wordpress.com as well as the developers of the wp-stats plugin but there is no fix as of yet. we can only hope that it will be corrected in a future update. google analytics is a good free alternative in the meantime to keep stats of your page.
and yes.. i too have this exact same problem. =(
