I'm also getting lots of precondition fail errors.
I'm currently trying 3.40-Beta-2 but IIRC 3.33 also has the same problem. 
3.32 was working ok.

The problem seems related to a crashed mirror being restarted with Do Not
Purge being set.
The problem also seems related to a web page being no longer available and the
Do Not Purge being set.

It also has the problem with files' extentions being changed to txt or
sometimes html:

09:45:02        Info:   engine: transfer-status: link added:
www.bangedup.com/bu_posts/CrissAngelSupernatural1.wmv -> C:/Documents and
Settings/Bill/My
Documents/_internetDLed/bangedup/web/txt/crissangelsupernatural1.txt