KB 950542 : Synchronous plug-ins do not respond to the events that are triggered in Microsoft Dynamics CRM 4.0
When you deploy synchronous plug-ins in a Microsoft Dynamics CRM 4.0 server that is configured to use a host header, the synchronous plug-ins do not respond to the events that are triggered in Microsoft Dynamics CRM 4.0.
KB 948746 : Error message when you execute a plug-in on a nondefault organization instance in Microsoft Dynamics CRM 4.0: "The request failed with HTTP status 401 unauthorized".
The default behavior for ICrmService object is that the organization name is the organization friendly name without spaces. It is not so in many cases. There is a fix for that. The KB also instructs how to change the friendly name if this is the choice.