PCAnywhere error "The selected computer is not responding. Connection cannot be made."

I just got a new computer, and am trying to setup pcAnywhere, but it doesn't want to connect to the hosts. I am trying to connect to a computer using PCAnywhere 12 and a USB modem. PCAnywhere says its connecting but after a few seconds it give me a message: 'Selected computer is not responding. Connection cannot be made.' 

 

My old computer connects in just fine using an older version of pcAnywhere


New Computer

Windows XP

USB Modem (I suspect this may be the culprit)

 

 

Any ideas on what may be going wrong?