We deactivated Windows firewall for the test and the issue remains.
Is there are parameter file to tell PRO-IV where to look for the telnet program? We can run telnet from the command prompt without having to type the full path name.
We had to install telnet from a WinXP machine because there was none in Vista.
We can connect and login to the server using the installed telnet.
The way the error appears ... the PRO-IV client gives out the error immediately (not connection attempts were seen on the screen).
It appears that the PRO-IV client was not able to create the socket it needs to make to process the connection.