Thanks for posting the log and your config, and the kextstat output -- everything that's needed!
The problem is indicated here:
2011-01-05 01:44:25 *Tunnelblick: openvpnstart status #247: /Applications/Tunnelblick.app/Contents/Resources/tun.kext failed toload - (libkern/kext) kext (kmod) start/stop routine failed; check the system/kernel logs for errors or try kextutil(8).
Tunnelblick was not able to load the tun kext, because it was unable to unload the "foo.tun" kext, which conflicts with it.
Type in the following command in Terminal:
sudo kextunload -b foo.tun
(Note: sudo requires your administrator password.)
Then do the kextstat command again; foo.tun should not be listed anymore and you should be able to connect.
If this happens again after you restart your system (whenever that is), then there is some software that is loading foo.tun whenever you restart your system, so you might want to look into that.