XDMCP Fatal Error 169 address

Hello. I previously had my xdm server running and it allowed me to use cygwin to run remote desktop with X -query x.x.x.x :1
But recently i noticed it had stopped working.
I get an error as shown in image, and i noticed that it mentions a 169.x.x.x. address.
I am wondering if anyone had had this problem. not sure where its getting this 169 address from. I do know there are some vmnet interfaces when i run ifconfig, although none are 169.x.x.x addresses.
I do not remember when this error started occuring.
xdm service seems to be running and config files seem ok.
Anyone help?
Wonder if its related to these virtual nics?
Thanks.

It seems that I needed an entry for the client I am connecting from in the hosts file on the xwindows server.

I didn't expect to need that as dns server has host records for all machines on network.

Anyway it works now

---------- Post updated 05-08-11 at 09:58 AM ---------- Previous update was 04-08-11 at 03:56 PM ----------

Aghh almost forgot...

I also had to add the -from otion to the X -query

So it looked like this:

x -query <server ipaddress> :1 -from <myipaddress>