When following:
1) Start Toad (without any connection being make automatically)
2) In Toad's top menu, Database | Spool SQL | Spool to screen.
3) Make your connection. (this has to happen AFTER spool sql has begun, so one can see the errors).
4) Try again to use F4.
If there are many "Lost Connections" messages in the log, escalate the issue internally with the Server's DBA, and, if there are no "Lost Connections" messages in the log, send the log to Quest Support.