I tried removing the key - Shouldn't I be allowed to validate over the internet? Nope, same error.
Also tried reinstalling the authorizer. At the end of the install I was told I needed to run the authorizer. I couldn't due to the same error.
I've used Reason since well before the ignition key and even when they added the ignition key never had a problem. Oh well. Eventually DRM bites you every time.