I ended up reformating the drive and did a clean install of 10.4 on the Powerbook with Tiger and then loaded the latest version of the Pogoplug software and everything worked just fine. The version of MacFuse that was loaded appears to be in Systems Preferences to be 2.0.2. I am not sure what the problem was since no matter how many times I installed, deleted and reinstalled etc. it would not give me access to the my pogoplugged drives. I was getting a password error and then the program would not access the drives.

Clean install and everything is just fine so apparently I had something on the machine that was not allowing MacFuse to do it job I guess.

I am appreciative of the prompt response from PogoPlug's engineers and community, Thanks guys. But, this time the problem was internal to my Powerbook and not your software or hardware which I am very happy with!