patched sample source (example/app.js) originally bundled with SalesForce Toolkit for Appcelerator 1.0

gistfile1.js

// this sets the background color of the master UIView (when there are no windows/tab groups on it)
Titanium.UI.setBackgroundColor('#000');

var FDC = require('com.salesforce');
Ti.API.debug("What what?");
Ti.API.debug("Here is the FDC thingy\n" + JSON.stringify(FDC));

var bWidth = "200";

var view1 = Titanium.UI.createScrollView({
	top: "0", 
	left: "0",
	layout: "vertical",
	contentHeight: "auto"
})

var view2 = Titanium.UI.createView({
	top:"0",
	left: "0",
	layout: "vertical"
})

//viewScroll.add(view1);

//
// create base UI tab and root window
//
var win1 = Titanium.UI.createWindow({  
    title:'Database.com Tests',
    backgroundColor:'#fff'
});

/*********************************** Test Button ***********************************/
var b1 = Titanium.UI.createButton({
	title: "Query User",
	top: "auto",
	height: "35",
	width: bWidth
})
b1.addEventListener("click", function(e){
	FDC.ForceOAuth.query("Select Id, Name From User Order By Name ASC", function(e){
		e = JSON.parse(e);	
		var t = [];
		for (var i=0; i < e.records.length; i++) {
			t.push( Ti.UI.createTableViewRow({
				 title:e.records[i].Name
			}));
		};
		renderResults(t);
	}, function(e) {});
});
view1.add(b1);

/*********************************** Test Button ***********************************/
var b2 = Titanium.UI.createButton({
	title: "Versions",
	top: "auto",
	height: "35",
	width: bWidth
})
b2.addEventListener("click", function(e){
	FDC.ForceOAuth.versions(function(e){
		e = JSON.parse(e);
		var t = [];
		for (var i=0; i < e.length; i++) {
			t.push( Ti.UI.createTableViewRow({
				 title:e[i].label
			}));
		};
		renderResults(t);
	}, function(e) {
		Titanium.API.debug(e);
	});
});
view1.add(b2);

/*********************************** Test Button ***********************************/
var b3 = Titanium.UI.createButton({
	title: "Resources",
	top: "auto",
	height: "35",
	width: bWidth
})
b3.addEventListener("click", function(e){
	FDC.ForceOAuth.resources(function(e){
		e = JSON.parse(e);	
		var t = [];
		for (var key in e) {
			t.push( Ti.UI.createTableViewRow({
				 title:key
			}));
		};
		renderResults(t);		
	}, function(e) {
		Titanium.API.debug(e);
	});
});
view1.add(b3);

/*********************************** Test Button ***********************************/
var b4 = Titanium.UI.createButton({
	title: "Describe Global",
	top: "auto",
	height: "35",
	width: bWidth
})
b4.addEventListener("click", function(e){
	FDC.ForceOAuth.describeGlobal(function(e){
		e = JSON.parse(e);	
		var t = [];
		for (var i=0; i < e.sobjects.length; i++) {
			t.push( Ti.UI.createTableViewRow({
				 title:e.sobjects[i].name
			}));
		};
		renderResults(t);
	}, function(e) {
		Titanium.API.debug(e);
	});
});
view1.add(b4);

/*********************************** Test Button ***********************************/
var b5 = Titanium.UI.createButton({
	title: "User Metadata",
	top: "auto",
	height: "35",
	width: bWidth
})
b5.addEventListener("click", function(e){
	FDC.ForceOAuth.metadata("User", function(e){
		e = JSON.parse(e);	
				var t = [];
		for (var i=0; i < e.recentItems.length; i++) {
			t.push( Ti.UI.createTableViewRow({
				 title:e.recentItems[i].Name
			}));
		};
		renderResults(t);

	}, function(e) {
		Titanium.API.debug(e);
	});
});
view1.add(b5);

/*********************************** Test Button ***********************************/
var b6 = Titanium.UI.createButton({
	title: "Describe User",
	top: "auto",
	height: "35",
	width: bWidth
})
b6.addEventListener("click", function(e){
	FDC.ForceOAuth.describe("User", function(e) {
		e = JSON.parse(e);	
		var t = [];
		for (var i=0; i < e.fields.length; i++) {
			t.push( Ti.UI.createTableViewRow({
				 title:e.fields[i].name
			}));
		};
		renderResults(t);
	}, function(e) {
		Titanium.API.debug(e);
	});
});
view1.add(b6);

/*********************************** Test Button ***********************************/
var b7 = Titanium.UI.createButton({
	title: "Create Record",
	top: "auto",
	height: "35",
	width: bWidth
})
b7.addEventListener("click", function(e){
	// For testing the create method you should have a custom object
	// called MyTable that only has a name field.
	FDC.ForceOAuth.create("ASUDEMO__MyTable__c", {Name:"From Test Harness"}, function(e){
		e = JSON.parse(e);	
		Ti.App.Properties.setString("lastCreatedId", e.id);
		alert("Record created successfully: id is " + e.id);
	}, function(e) {
		Titanium.API.debug(e);
	});
});
view1.add(b7);

/*********************************** Test Button ***********************************/
var b8 = Titanium.UI.createButton({
	title: "Retrieve Record",
	top: "auto",
	height: "35",
	width: bWidth
})
b8.addEventListener("click", function(e){
	var id = Ti.App.Properties.getString("lastCreatedId", "");
	if (id.length == 0) {
		alert("You need to create a record first.");
	} else {
		FDC.ForceOAuth.retrieve("ASUDEMO__MyTable__c", id, ["name", "CreatedDate"], function(e){
			e = JSON.parse(e);	
			if (e[0]) {
				alert("Could not retrieve record\n" + e[0].message);
			} else {
				alert("Record retrieved successfully... " + e.Name);
			}
		}, function(e) {
			Titanium.API.debug(e);
		});
	}
});
view1.add(b8);

/*********************************** Test Button ***********************************/
var b9 = Titanium.UI.createButton({
	title: "Update Record",
	top: "auto",
	height: "35",
	width: bWidth
})
b9.addEventListener("click", function(e){
	var id = Ti.App.Properties.getString("lastCreatedId", "");
	if (id.length == 0) {
		alert("You need to create a record first.");
	} else {
		FDC.ForceOAuth.update("ASUDEMO__MyTable__c", id, {Name:"Updated Test Recorss"}, function(e){
			e = JSON.parse(e);	
			if (e[0]) {
				alert("Could not update\n" + e[0].message);
			} else {
				alert("Record updated successfully... " + e.Name);
			}
		}, function(e) {
			Titanium.API.debug(e);
		});
	}
});
view1.add(b9);

/*********************************** Test Button ***********************************/
var b10 = Titanium.UI.createButton({
	title: "Delete Record",
	top: "auto",
	height: "35",
	width: bWidth
})
b10.addEventListener("click", function(e){
	var id = Ti.App.Properties.getString("lastCreatedId", "");
	if (id.length == 0) {
		alert("You need to create a record first.");
	} else {
		FDC.ForceOAuth.del("ASUDEMO__MyTable__c", id, function(e){
			e = JSON.parse(e);	
			if (e[0]) {
				alert("Could not delete\n" + e[0].message);
			} else {
				alert("Record deleted successfully... ");
			}
			Ti.App.Properties.removeProperty("lastCreatedId");
			Ti.API.debug("Delete response: " + e);
		}, function(e) {
			Titanium.API.debug(e);
		});
	}
});
view1.add(b10);

/*********************************** Test Button ***********************************/
var b11 = Titanium.UI.createButton({
	title: "Search Records",
	top: "auto",
	height: "35",
	width: bWidth
})
b11.addEventListener("click", function(e){
	FDC.ForceOAuth.usePostBin = true;
	FDC.ForceOAuth.search("FIND {Test*} RETURNING ASUDEMO__MyTable__c(Name, CreatedDate)", function(e){
		e = JSON.parse(e);	
		var t = [];
		for (var i=0; i < e.length; i++) {
			t.push( Ti.UI.createTableViewRow({
				 title:e[i].Name
			}));
		};
		renderResults(t);
		Ti.API.debug("Search response: " + e);
	}, function(e) {
		Titanium.API.debug(e);
	});
	FDC.ForceOAuth.usePostBin = false;
});
view1.add(b11);

/*********************************** Test Button ***********************************/
var b12 = Titanium.UI.createButton({
	title: "Record Feed",
	top: "auto",
	height: "35",
	width: bWidth
})
b12.addEventListener("click", function(e){
	FDC.ForceOAuth.usePostBin = true;
	FDC.ForceOAuth.recordFeed("a0QA0000005DSqhMAG", function(e){
		Ti.API.debug("Feed: " + e);
	}, function(e) {
		Titanium.API.debug(e);
	});
	FDC.ForceOAuth.usePostBin = false;
});
view1.add(b12);

/*********************************** Test Button ***********************************/
var b13 = Titanium.UI.createButton({
	title: "News Feed",
	top: "auto",
	height: "35",
	width: bWidth
})
b13.addEventListener("click", function(e){
	FDC.ForceOAuth.usePostBin = true;
	FDC.ForceOAuth.newsFeed("005A0000000h8tg", function(e){
		Ti.API.debug("Feed: " + e);
	}, function(e) {
		Titanium.API.debug(e);
	});
	FDC.ForceOAuth.usePostBin = false;
});
view1.add(b13);

/*********************************** Test Button ***********************************/
var b14 = Titanium.UI.createButton({
	title: "Profile Feed",
	top: "auto",
	height: "35",
	width: bWidth
})
b14.addEventListener("click", function(e){
	FDC.ForceOAuth.usePostBin = true;
	FDC.ForceOAuth.profileFeed("005A0000000h8tg", function(e){
		Ti.API.debug("Feed: " + e);
	}, function(e) {
		Titanium.API.debug(e);
	});
	FDC.ForceOAuth.usePostBin = false;
});
view1.add(b14);



//Render Results
renderResults = function(tableData) {

	var tView = Ti.UI.createTableView({
		left: "0",
		top: "50",
		backgroundColor: "yellow"
	});
	
	var b = Ti.UI.createButton({
		title: "Close",
		top: "0",
		left: "0",
		height: "40",
		width: "300"
	})
	b.addEventListener("click", function(e){
		win1.remove(tView);
		win1.remove(b);
		view1.show();
	})
	win1.add(b);
	win1.add(tView);
	tView.setData(tableData);
	view1.hide();	
	tView.show();
	Titanium.API.debug(e);
}



win1.add(view1);


Ti.API.debug("Opening OAuth window...");

FDC.ForceOAuth.open("REPLACE_WITH_YOUR_CONSUMER_KEY");

// Handle successful OAuth dance
Ti.App.addEventListener("OAuthSuccess", function(e){
	Ti.API.info("In the OAuth Success handler...");
	// open tab group
	win1.open();
});

I copied your source above to my app.js and trying to run this after setting tghe consumer key. It goes well up to opening the OAuth. When I click the button labeled " it dumps a message:

DbDotCom.REST.OAuth.refreshToken:BLAH BLAH BLAH
retry: undefined
e: Error Domain=ASIHTTPRequestErrorDomain Code=3 "Authentication needed" UserInfo=0x9c319a0 {NSLocalizedDescription=Authentication needed}
XHR status: 401
[ERROR] In the error handler looking for a 401, and have a 401
[ERROR] Handleing the 401 error...

Any idea what I am doing wrong. I am expecting it to show the login screen when the Authentication is needed but it does not. Simply dumps the message in the log.

Thanks,
Venkat