hi,
i do have username and password just wasnt sure if i should show it, and ive closed and restarted the wallet then started cgminer but it comes up with the same response. this is exactly what i have.
cgminer --scrypt -o
http://127.0.0.1:33032 -u chicken -p *********** --worksize 256 --lookup-gap 2 --thread-concurrency 8192 -g 2 --intensity 12 -Q 0
rpcuser=chicken
rpcpassword=***********
rpcallowip=127.0.0.1
rpcport=33032
port=33033
daemon=1
server=1
do i have to add anything to the mining section in the wallet.
Don't show your password here, we were just making sure you didn't forget to actually specify it. You don't have to add anything to the mining section, your config looks good and should actually work now. But apparently on some systems if you define an allowed IP or IP range in the .conf file via rpcallowip= then it will not actually listen on an ipv4 socket but only on ipv6, and therefore not on 127.0.0.1, see:
https://bitcointalk.org/index.php?topic=165336.0Try setting rpcallowip=* or even entirely omitting the rpcallowip= setting in the .conf file, but change your password before.
Also double check if you are using the correct .conf file name and location (%appdata%\Ferretcoin\ferretcoin.conf on Windows and ~/.ferretcoin/ferretcoin.conf on Linux).