On Mac OS X Mountain Lion, older versions of PandaPow doesn’t work with the default settings. To fix that you need to do as follows:
In the PandaPow Details window (choose Details… from the menu), change the settings to Do not set nameserver as seen in below image.
Just to make sure the changed settings take affect.
Since the name server now isn’t set by PandaPow, you need to set them manually. This only needs to be done once.
To set the name servers, also known as DNS servers, please follow instructions here: How to change DNS on mac
You should now be able to connect PandaPow as before, and it should work.