Hi Sarit, long time no see!
Check with your host provider, maybe they are restricting xmlrpc for security reasons (It's not a Wordpress only RPC).
Also check that the file is really there - maybe something got icky in the installation.
Is this the first time you're remotely accessing your blog? Do other such programs (Windows Live Writer, Flickr's Blog This button, Digg's Blog This) work?
Behazlaha.
