So much for Auto Discovery!!! OS X 10.6 - Could not connect to server

 So much for Auto Discovery!!! OS X 10.6 - Could not connect to server

OK for the past few hours I have been trying to get the pro version running just on my local home wifi network.V2.1.217

Running on a MBP OSX 10.6.6

Yes I have installed the Mac companion. I have reinstalled it a number of times.

I have read through the forum to read other similar problems.

I have follow the instructions repeatedly as below:

Open "System Preferences"
Click the "Sharing" icon under the "Internet & Wireless" section.
Turn On "Remote Management" by checking the check-box.
Select sharing options and click OK button.
Click "Computer Settings..." button.
Check "VNC viewers may control screen with password:" and type the password for VNC access.

Everytime i try to connect on my iphone 4(iso 4.2) it says "Could not connect to server" then it crashes.

Am I missing something?