The documentation that you referred to is outdated. Please refer to the following documentation instead: https://confluence.atlassian.com/display/SPCON/Planning+your+Environment+with+SP+2010
To answer your question, yes, SharePoint 2010 is compatible with SharePoint Connector 1.7. However, please ensure that you are using Confluence 5.x in order to use SharePoint Connector 1.7.
Anyway, it's very hard to know why you are seeing this error without looking at the logs. So I'd advise you to raise a new support ticket at support.atlassian.com so that we can investigate about this matter.
We highly recommend Tzunami for easy migration with SharePoint 2010. Learn more about the tool here: http://www.tzunami.com/products/td-confluence-migration/. Tzunami is a leading provider of Migration solutions for enterprises of all sizes. As the pioneers of content migration, Tzunami enables seamless migration from over 15 legacy systems. Tzunami Deployer saves up to 90% of traditional migration time – lowering costs and maximizing return on investment. Feel free to try an evaluation version of the software at no cost at http://www.tzunami.com/downloadevaluation/
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