Update Notifications: API Server Error

Can't auto update. Entered API key, checked, green. When hit on auto-update button the following screen shows up.

When i go back to the WPMUDEv update menu, the API key is in red.

Edit: - The plugin wasn't updated. I can update manually by uploading the files but auto-update won't work. I just updated to WP 3.3.1 Network. Reinstalled it as well but still won't work