This same problem is occurring for my friend. Him and I have yet to find a solution. Maybe a firewall or other program that may be blocking it? Although if that's true, I don't think you'd be able to see the players and rooms.
Maybe try this:
Go into free play and type /jo (Put whatever you want here, just not a current room) and see if it will create a room for you. If not, then I do not know what is wrong.