Sorry my last response was by email, probably should have been here
Anyway what I've found is
if the joomla DB is referred to by a Domain name eg mydomain.com and you put "localhost" in as the Server then it seems to work. I've had trouble saving some forms though, the last screen is a bit confusing, at the top it has "continue which doesn't always seem to save it and down the bottom is "Use External DB" which takes you back to the first screen.
The domain that I have given you doesn't yet have a domain name and is accessed by the IP address and that's what doesn't seem to be working. "localhost" doesn't work there.
I'll send you the last screen shot you asked for tomorrow if that's ok, it's late here
Thanks