Good Morning Kristy,
I ran into the same issue that you are having. A few things things that I have found with configuring this application:
1. The application will only accept cached basemaps. I had a non-cached basemap with hillshade that was too large to be cached. When I tried to point the config file to that service, it would just sit there and spin. When I got rid of the hillshade basemap, and cached a smaller basemap, then it started working.
2. I ran into the exact issue that you had when I was configuring the previous release of the application. I then switched over to the November 2012 release, which functioned more as it should (got rid of that issue). I would highly recommend doing that if you haven't already.
3. I had some communication issues with our server, so if you are running this off of your own server (as opposed to the cloud, amazon, etc.), make sure that you have the correct syntax for your services, and that you can see them from an outside connection (if your goal is to make it publicly available).
Hope that helped
