Listen up folks! 
“server not responding” or “another program are in use of the same socket”- type or error can may be nothing to do with your own setup or Internet connection.
It seem that sometimes it can be about STEINBERG-NET servers that are completely down for the moment, that cause this error messages. It can be a good idea to try and see if you can web surf to Steinberg’s website to exclude this kind of problems.
This happen yesterday Saturday 20th of July 2013 approximately between 8-10 PM Standard Central European time. Both the Steinberg-Website and the FORUM was completely down and also “VST Connect” couldn’t be used or connect during this hours.
Because of that it cause all kinds of strange error message when you tried to use of “VST Connect”. It even followed with a long one that urge you contact Steinberg if this errors continues. 
I don’t know exactly how this work but its seem to that “VST Connect” need Steinberg severs to functional correctly. After all the Severs finally were up again, “VST Connect” work perfectly with out any problems again without me changing anything in my setup.
It seem that “VST Connect” need to contact a specific Steinberg Server to get the random code or confirmation of some sort.
Steinberg tech knows exactly more about how this actually do work but I guess they will not explain further for security reasons. I’m glad if they don’t, we don’t want someone to crack and intercept our sessions.
Then after connection has been established I guess the session work in “peer to peer”-mode between the two clients.
I hope it help solve some of the confusions.
Best Regards
Freddie