FDS samples not working "send failed"

Hi all,
me again with another problem .....
I have installed FDS at the default location c:\fds2...
I am having problems running the sample apps that can be accessed from the page :- http://localhost:8700/samples/
The Integrated Flex Server is running in a cmd window as required.
However, when I try to run the sample CRM app at http://localhost:8700/samples/dataservice/crm/companyapp.mxml (or any Data Service samples ) I get the initial screen showing with the 2 panels BUT then get an error message "Send failed" popup. When I say OK to this popup, I get not data returned.
I am sure it's a fairly easy problem to solve for you talented folks.
Thanks in advance

Regards
Smak