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API Only User login

Are there any restrictions on the endpoint for an API Only user logging in (like Partner but not Enterprise, or SSL endpoint only) ?
I have a test case where when I use the API only user with the Data Loader it logs in fine but when I try to login with my application I get the "Invalid userid..." message. I've checked the soap messages and there's nothing wrong with the outbound message. But with one application the userid works and with another on the same machine it doesn't.
Thanks in advance,
IIRC (and its been a while), you can't use the office toolkit with api only logins.