It seems I'm not alone in problems transferring domains from Verisign's grasp. From supportem.com:
"It has come to our attention that Verisign (was Network Solutions) has some 'unoffical' polices to make it difficult to transfer domains 30 days before expiring. Previously VeriSign has tried other questionable business tactics and has made it very difficult to transfer domains away from them. We are recommending if you are thinking of moving your domain away from VeriSign start the process as early as possible to prevent transfer denials.
Of course you can transfer to any registrar you like but we also offer domain registration/renewals and are more than happy to help you with the process.
In connection hell today. Have sporadic 28.8 access from Grand Junction, CO. Making matters worse, am trying to move my domains from Verisign to somewhere else, and am getting nonsense from Verisign. Once Verisign gets the domain, it seems to be hard to move elsewhere. More later...