I have found the reason for this issue and the fix:
Due to having an android phone, and being logged into several Google services 
at one time Pidgin fails to connect.
The solution is simple in the Advanced tab of Modify account add 
talk.google.com for the connect server.
Accept the ssl certificate and you are good to go with google!

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https://bugs.launchpad.net/bugs/784708

Title:
  Pidgin Not logging into Google Talk

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