I have the exact same issue (running Windows 7 - 32Bit). I think this is part of the design of the new version of GoogleDrive. The desktop app used to connect through my authenticating proxy server, but now it doesn't. I can't access preferences (grayed-out) and there don't appear to be any useful diagnostics or configuration parameters accessible.
I uninstalled and reinstalled drive, but same issue.
It's obviously very frustrating, since it doesn't work and there's no way to reset it or figure out why it's failing.
