(See also http://www.sharepointassist.com/2009/01/08/sharepoint-workflow-failed-on-start-retrying/)
Problem
You’re developing a Windows Workflow Foundation (WWF) workflow and no matter what you do you get the Workflow “Failed on Start (retrying)” message. In my case I debugged over and over again only to see the TaskCreate method throw an exception (that you can’t capture) and fail.
Solution
Specify a token other than the default Workflow1 or top level token. I like to use “task1, task2, or taskAdmin” or something of those sorts to organize my workflow tokens.
Explanation
I believe the workflow fails because SharePoint can’t “callback” properly to the original task if that task is associated with a generic or top level token even if you have only one task in your workflow. This is a common mistake and even after over a year of WWF development I still get caught here and there in my haste.
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