Figured the issue out:
You can set default value of Web service Url by editng LiveSupport.exe.config file.
<add key="CuteChatServiceUrlBase" value="http://yoursite.com"/>
I forgot to append the CommunityServer Directory to the end of the above url
FYI - this is a very cool product. I installed both the messenger and the support onto CS in less then 1/2 hour.
Vince