Systems Management

I am just starting out with Wise and have already run into a problem that seems to have me stumped.
We have installed SQL 2008, IIS, and Wise Professional on a Windows Vista workstation to allow it to act as the Wise Server. We then installed the client on an XP Workstation to allow it to act as the "clean" machine.

Whenever we open Wise on the client, it is not able to connect to SQL on the server.
Gives an Error 52.
Does anyone know what this means or what might be causing it?

Some troubleshooting details:
Can connect directly from the ODBC connections back to the server.
The computers are not in a domain, they are in a workgroup.
Have created the same user account\password on both systems.
Installation on client and "server" was flawless.
During client install, pointed to the server as laid out in the installations docs.
Installed the Network Client version, for the smallest footprint.
Firewalls are disabled on both systems.
Can telnet to and from each system.

As another point of order, I want to go ahead and put this out there:
I realize that this is not the best set up, and I realize that we can use VM. However, for our environment (famous last words) we have to show it working in the physical, workgroup environment before we can get approval to move forward with the virtual domain environment.

Thanks for any help you can offer.