TOR proxy test FAILED! Check your proxy and Polipo settings.

I have TOR, Privoxy & TOR Button running and when surfing to "https://check.torproject.org" to verify if TOR is working the website states the following:

"You are not using TOR." and provides the IP address I am using.

This happens when using WiFi at the local library and at Starbucks.

I then perform a proxy test in TOR Button preferences and receive the following message:

"TOR proxy test FAILED! Check your proxy and Polipo settings."

I'm using FireFox version 3.0.16, TOR Button 1.2.3, TOR v0.2.0.34, Privoxy 3.0.8 and UBUNTU HARDY HERON 8.04 x64.

I get the above errors whether I use Polipo or manually configure FireFox to use TOR.

When I manually configure FireFox to use TOR, I use the following settings:

*Use Custom proxy settings.

HTTP Proxy: 127.0.0.1 Port: 8118
SSL Proxy: 127.0.0.1 Port: 8118
SOCKS Host: 127.0.0.1 Port: 9050

*SOCKS v5

No proxies for: 127.0.0.1

The output of my TOR log is as follows:

Dec 14 19:54:08.000 [notice] Tor 0.2.0.34 (r18423) opening new log file.
Dec 14 20:05:09.023 [notice] Interrupt: exiting cleanly.
Dec 14 21:24:28.852 [notice] Tor 0.2.0.34 (r18423) opening log file.
Dec 14 21:24:33.777 [notice] We now have enough directory information to build circuits.
Dec 14 21:41:38.996 [notice] Interrupt: exiting cleanly.
Dec 15 10:51:19.972 [notice] Tor 0.2.0.34 (r18423) opening log file.
Dec 15 10:51:25.499 [notice] We now have enough directory information to build circuits.
Dec 15 10:55:31.768 [notice] Tor has successfully opened a circuit. Looks like client functionality is working.
Dec 15 10:58:42.379 [warn] Please upgrade! This version of Tor (0.2.0.34) is obsolete, according to the directory authorities. Recommended versions are: 0.2.0.35,0.2.1.19,0.2.1.20,0.2.2.1-alpha,0.2.2.2-alpha,0.2.2.3-alpha,0.2.2.4-alpha,0.2.2.5-alpha,0.2.2.6-alpha
Dec 15 10:58:42.380 [notice] Our directory information is no longer up-to-date enough to build circuits: We have only 0/1654 usable descriptors.
Dec 15 10:58:42.380 [notice] I learned some more directory information, but not enough to build a circuit: We have only 0/1654 usable descriptors.
Dec 15 10:58:48.904 [notice] I learned some more directory information, but not enough to build a circuit: We have only 96/1654 usable descriptors.
Dec 15 10:58:49.445 [notice] I learned some more directory information, but not enough to build a circuit: We have only 192/1654 usable descriptors.
Dec 15 10:58:49.688 [notice] I learned some more directory information, but not enough to build a circuit: We have only 288/1654 usable descriptors.
Dec 15 10:58:51.031 [notice] I learned some more directory information, but not enough to build a circuit: We have only 384/1654 usable descriptors.
Dec 15 10:58:51.284 [notice] We now have enough directory information to build circuits.
Dec 15 11:21:35.190 [notice] Catching signal TERM, exiting cleanly.