Rob,
I was able to visit http://developer.coronalabs.com from safari anyways I checked the network settings and unchecked Auto proxy discovery and tried buidling again, got the same error message.
Is it something do with email, should the provision file have the same email as Corona login email?
-Victor
You need to be logged into the simulator with the email you signed up with. You can do a Preferences->Deauthorize and Quit and try logging in again.
Thank You Rob, so that was the problem, it is all good now, it was a newbie error 
I just started hopefully will be able to get familiar soon for an iOS game!