asterisk users - May 2005 - No Such host - IAX2 channel problem

Hi all,
I am new to asterisk and trying to setup clients over LAN to enable 
voice-chat between them. I have got two clients(IAX-phone) having extensions 
4061 and 4082. I am able to call extension 600(provided with sample 
configuration) from both of them but when I try to call 4061 from 4082 or 
vice-versa I get error message at server...
 chan_iax2.c:2215 create_addr: No such host: 4082
app_dial.c:759 dial_exec: Unable to create channel of type 'IAX2'
 == Everyone is busy/congested at this time
 Finally it executes playback and hangup.
 Any hints......???
 Thanks,
Sudhu
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