Remote clients fail to connect with error 1432

Remote clients getting error 1432 when connecting to a database.
Unable to connect with -H <hostname> -S <port> from remote machines or the local machine
Database Server was started with '-H localhost'
What the Effect is of Specifying the -H Database Startup parameter since Progress 9

Remote Clients can successfully connect with -H localhost -S <port>
Database starts without errors and the Database Broker TCP port is listening
A Personal Database License is not in use.

In Progress 8, there is no difference when starting the Database Server with a Host Name (-H) database startup parameter of:

• -H localhost,
• -H <machine name>, or
• no -H is used

When the machine name is used, Progress performs a check on the machine name to ensure that it matches the machine name as returned by OS command 'hostname', but other than that there is no functional difference between the three methods.

Since Progress 9, when -H localhost is used, the Database Server process is bound to the loopback interface only which will not allow Network Connections from Clients on other machines.

Since Progress version 9, Remove the Host Name (-H) database startup parameter from the Database Server startup command line or .pf file if in use (_mprosrv or proserve).

Progress Articles: 

Client-Server connections fail with Error 1432 with a Personal Database License   
When to use machine-name or IP address or localhost for the value of the connection parameter -H