"connection failed please check server settings" message on my softsqueeze

I am using media server 7.7.2 on windows xp and have 2 SB3's that work fine.
On my desktop I have installed Softsqueeze and when it starts I get the message in the title.
I'm not sure what to check or change to get Softsqueeze to work ?
The host name is correct and the port is 9000 and Java is up to date
Audio is set to "primary sound driver"
I am at a loss as to what to check next

Any suggestions ??