I get the same error and am not able to host games at all. "Host Game in CVP failed" each time.
I've had the demo for bout one week and everything seemed fine till now.
Funny i thought i had solved all my demigod problems when i uninstaled my logitech quickcam device b/c game wouldn't run with that installed.
Sometimes i get an even funnier messages when i try to host/join, it says "Success" and i press ok an it ejects me.
I am still able to join games rarely, but when i do im always fine and have a low ping. I also noticed that diff players see different ping for each other, whats up with that?
Anywyas i really like this game or i wouldnt be replying. i still plan to buy the game..hope stuff gets resolved.