All ajax return 404 with Phonegap 3.0.0 – jQuery 2.0.3-Collection of common programming errors

I have loaded everything required from the documentation to enable internet connectivity but all and any Ajax requests are received with a 404 return code.

I know that the file I am trying to reach is assessable across domain. Seen here: http://jsfiddle.net/hutber/VN864/

I am running this same code inside my app and on click 404 is returned in the alert.

To test my connection I am running:

    var networkState = navigator.connection.type;

    var states = {};
    if(typeof Connection!=="undefined"){
        states[Connection.UNKNOWN]  = 'Unknown connection';
        states[Connection.ETHERNET] = 'Ethernet connection';
        states[Connection.WIFI]     = 'WiFi connection';
        states[Connection.CELL_2G]  = 'Cell 2G connection';
        states[Connection.CELL_3G]  = 'Cell 3G connection';
        states[Connection.CELL_4G]  = 'Cell 4G connection';
        states[Connection.CELL]     = 'Cell generic connection';
        states[Connection.NONE]     = 'No network connection';

        alert('Connection type: ' + states[networkState]);

This returns the connection as expected. Currently WiFi connection

config.xml

AndriodManiest.xml

JS used to call said http request

            $.ajax({
                url: 'http://stage.sexdiaries.co.uk/app/users/login',
                type: 'post',
                data: {
                    'uname': values.uname,
                    'pword': values.pword
                },
                crossDomain: true,
                error: function(data){
                    c(data.status);
                },
                success: function(data){
                    c('success: '+data);
                    data = JSON.parse(data);
                    if(data.privateKey){
                        $.jStorage.set('uid',data.ud.uid); //store user ID in the localStorage to persist
                        sessionStorage.setItem('privateKey',data.privateKey); //store privateKey in session so it disapears when the user closers the tab
                        Backbone.history.loadUrl('');
                    }
                }
            });

So I know that the connection is active. Do I really have a connection? Am I crazy? How can I reach this http request?