The -H ( Host ) parameter value, used when starting a database can effect how a remote client is able to connect to that database.
1. When
localhost is used for the -H parameter when starting the database, clients must connect from the same host that the database broker was started on. Clients can only make shared memory connections or a remote connection by specifying -H localhost and the appropriate -S <portnumber | servicename> that the database is listening on.
It is not the Progress client that is license restricted, it is able to connect to any server that has remote logins enabled. The restriction is in the database server component where the server is bound to the loopback interface to prevent it from allowing network connections from clients on other machines. That means that any client connecting must be running on the same machine, and must be connecting using -H localhost / -H 127.0.0.1.
Client-Server connections fail with Error 1432 with a Personal Database License2. When the database is started with a -H value of a Hostname, TCP/IP address or the -H parameter is left off completely at startup, a client from remote machine is able to connect by using the proper Hostname or TCP-IP address and -S <parameter> for the database.
Error 1432 with 'errno 0' when try to connect client/server: First things to rule out. 
