OK, so I had the same problem but it is solved now. Let me tell you about it.
The fact that you can't connect to the app and keeps showing "a few seconds to free calls" happens because the Iphone App expired, and yu can check that bu going to my.magicjack.com log in and you will see under subscriptions. There is no way to renew it though.
I originally downloaded that app and chose to get a fre enumber so I had a *xxxxxxxxxx* number and then I bought a magicjack plus device so I had a real american number. As you know there is no way to change it.
So let me tell you how I got this two problems fixed.
I filled 2 complaints, 1 with the Better Business Bureau and 1 with the Federal Trade Commissions. After filling those complaints and being EXTREMELLY rude with the supervisors in the chat support for Magicjack the changed the crappy number and linked it to my magicjack number so I can use the real number with my iphone app now. Of course I was also able to log in because they changed the expiration date to some day in June or July, once that day comes up I will have to fight with them again, but I still have half year anyways hehehe, I will take care of that later.
Just so you know they even deactivated the magicjack app from my account so I could get the log in screen inthe Iphone App so I could chose the option USE EXISTING ACCOUNT so I could enter the information (login) for my Magicjack Plus device.
Magicjack customer service is nothing but crap, they fixed it after the complaints and after I started to be rude to them, if you arenice to them they will not help you at all.
Go ahead and fill th complaints with the Better Business Bureau and the Federal Trade Commissions online (and let the operators and supervisors in the chat know) and they will help you.
The actual service if good, it works perfect for me in the Iphone through Wifi or 3G and at home with the Magicjack Plus device it is a charm!
Fight for your rights!
David