I have tried the SipDemo as a starting point of developing a softphone but have not yet modified the code. My sip credentials entered on SipDemo are working on other softphones and did a double check whether they are correct or not. The error code returned is -4(No data connection). I'm using an HTC wildfire S with android 2.3 as my testing handset.
When I googled around, I found that someone had the same problem and his solution was to hardcode tcp because the handset was not working with udp hence the "registration failed" message was shown.