Problems setting up VLC Sever/client streaming

I'm trying to set up a Linux machine as the server and a Windows XP machine as the client.

Both machines are connected to the same local network via a Wi-Fi router. I setup the stream with the following properties :

• http stream
• port 8080
• play locally And not much else.

No firewall on the windows client(Windows firewall is disabled)

When I try to open network stream via the client machine(Using VLC or Windows Media Player) I get the following errors:

Media Player error code :

0xC00D11B3: Encountered a network Problem.

VLC Console:

main warning: connection timed out
access_mms error: cannot connect to 192.168.1.3:8080
main debug: no access module matching "http" could be loaded
main debug: TIMER module_need() : 12625.810 ms - Total 12625.810 ms / 1 intvls (Avg 12625.809 ms)
main error: open of `http://192.168.1.3:8080' failed
main debug: dead input
main debug: repeating item
main debug: starting playback of the new playlist item
main debug: resyncing on http://192.168.1.3:8080
main debug: http://192.168.1.3:8080 is at 0
main debug: creating new input thread
main debug: Creating an input for 'http://192.168.1.3:8080'
main debug: using timeshift granularity of 50 MiB, in path 'C:\DOCUME~1\Accer\LOCALS~1\Temp'
main debug: `http://192.168.1.3:8080' gives access `http' demux `' path `192.168.1.3:8080'
main debug: creating demux: access='http' demux='' location='192.168.1.3:8080' file='\\192.168.1.3:8080'
main debug: looking for access_demux module: 0 candidates
main debug: no access_demux module matched "http"
main debug: TIMER module_need() : 0.461 ms - Total 0.461 ms / 1 intvls (Avg 0.461 ms)
main debug: creating access 'http' location='192.168.1.3:8080', path='\\192.168.1.3:8080'
main debug: looking for access module: 2 candidates
access_http debug: http: server='192.168.1.3' port=8080 file=''
main debug: net: connecting to 192.168.1.3 port 8080
qt4 debug: IM: Deleting the input
main debug: TIMER input launching for 'http://192.168.1.3:8080' : 13397.979 ms - Total 13397.979 ms / 1 intvls (Avg 13397.978 ms)
qt4 debug: IM: Setting an input

Need Help. Thanks in advance.