I'm having the exact same problem. It was working fine last night when I was playing, but now I am at connection #18 and it's not connecting. Guess I'll just have to wait.
There will be Network Maintenance tomorrow morning. Hopefully it'll solve some of the connection and lost packets issues. *crosses fingers*
Manga @ Triumph
"Meanwhile In The Halls Of Titan"...Titan Network Working To Save City Of Heroes
Save Paragon City! Efforts Coordination
It was working fine last night, but now when I try to start up the game it gets stuck on "Connecting.. #". I'm up to #30 now and it seems likely to go on forever.