To see what the problem with your shipping server behavior may be you will need to put in the full request and full response for the shipping service provider on the failure page you are getting to.
Open up this page in DW and go to the bindings to find the UPS shipping quote bindings group, just drag and drop the full request and full response bindings onto the page like you did with the checkout bindings.
When you test this out again you should see the full request and full response, it should let you know what is not correct and what will need to be updated.