Can also confirm this problem. I am able to login _once_ using my delegate setup with my blog but after the initial logout any attempt to login again results in the same problem with this specific error:
Could not discover an OpenID identity server endpoint at the url:
A fix to this ASAP is _greatly_ appreciated. If I can help in some way please let me know as I _really_ want to...
2008-02-17 06:09:00 UTC in WordPress OpenID plugin