I am seeing the exact same problem. Getting an Oops after the verifying device ownership setup runs. The device is blinking cyan during this process and stays like that after. I have my router setup for WPA2 and I even changed the router password once and connected all other devices but the Garadget setup is failing. I have tried this setup about 15 times now with different devices but the behavior is exactly same.
It would be great if you could send a replacement along with the return label and I can send back the defective piece. I saw that your company is based out of colorado which is where I am located as well.