I seem to have misunderstood the generation process. I though it was only a matter of time but after reviewing some of the docs I noticed something about it being a race. Is that a race to generate the next block which restarts evertime someone generates the latest block?

Ah yes,

I've paid 0.01 now and the payment is now showing 1/confirmed.

Thanks

I just got 0.05 free bitcoins from https://freebitcoins.appspot.com/ and my client says

Status: 0/unconfirmed
Date: 04/01/2011 05:20
From: unknown
To: 1NbytvEvCcHPvCXxXvQVrGVhkbeqa3QJnL (yours, label: Your Address)
Credit: 0.05
Net amount: +0.05

When I try to pay 0.01 back to 15VjRaDX9zpbA8LVnbrCAFzrVzN7ixHNsC I get
"Error, Amount exceeds your balance"

Status
1680 khash/s Generating 8 connections 100950 blocks 1 transaction

Whats wrong?

Thanks
Rob

A couple of weeks ago I installed bitcoin on three Windows PC's, one of which is always on. I have poked a hole in my firewall and the client has downloaded lots of blocks, is reporting many connections and says that it's generating at around 2000 khash/s. I get no other feedback on how generating is progressing. Is this normal or is there something wrong?