I called logmein and was able to resolve the issue. Right click (in ignition) on the computer login that you are having issues with, click properties. Click on "Forget Stored Credentials" and click "OK". You should be able to connect using remote control again, just reenter your user and password, click save credentials. With Windows 8.1 update, they make you create a new login email address, and it must create a problem with your previously save credentials. I did this and was able to connect again.
This works but the new credentials arent being saved so i get the reconnect error again. The only way I can get it to work is to clear credentials each time i want to log in with ignition. At the moment this doesnt make it any better than loggin in through a browser. Im connecting to a local account on windows 8.1
I have the same problem where you have to clear the credentials each time. This only started after the 8.1 upgrade.
In addition, the ignition client constantly requires me to log back in. This has happened since I have been running windows 8. It seesm to randomly detect that I have lost internet access by displaying the message "Sorry, LogMeIn requires an Internet connection. Please check your network." I click the back button and I can continue using it for a while, but eventually it reverts to asking me to login.
Oddly I constantly have to re-login to ignition on my ipad as well since iOS7.