This seems to be fixed in dapper. I did find that if I killed the applet and then restarted it after connecting to the wireless network, that it would work fine after this. It seems like this is a problem with it requiring a network connection when it is started.
-- dictionary applet fails to find server https://launchpad.net/bugs/37807 -- desktop-bugs mailing list desktop-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/desktop-bugs