I attempted to reproduced this and was able to see this exact generic error. I saw this when I attempted to connect to a non SSL host with this option checked. Is there a possibility there is an issue with SSL on your server? If you de-select this option and connect are you able to see the host?
I can connect successfully with a non SSL host setup. Additionally, we have used the exact same SSL cert with a different emulator and it works fine.
I would suggest to gather a telnet log and a export of your settings. Then open a support ticket to troubleshoot this. To gather a telnet log you can follow the guide outlined at the following link: http://community.landesk.com/support/docs/DOC-28142