Errno 10061 : No connection could be made because the target machine actively refused it ( client – server )

I have a problem with these client and server codes, I keep getting the [Errno 10061] No connection could be made because the target machine actively refused it

I’m running the server on a virtual machine with Windows XP SP3 and the client on Windows 7 64bit, my python version is 2.7.3. What I want to know is how should I edit the code to use the client and server on different networks! Thanks!

server :

#!/usr/bin/python           # This is server.py file

import socket               # Import socket module
s = socket.socket()         # Create a socket object
host = '0.0.0.0' # Get local machine name
port = 12345                # Reserve a port for your service.


print 'Server started!'
print 'Waiting for clients...'

s.bind((host, port))        # Bind to the port
s.listen(5)                 # Now wait for client connection.
c, addr = s.accept()     # Establish connection with client.
print 'Got connection from', addr
while True:
  msg = c.recv(1024)
  print addr, ' >> ', msg
  msg = raw_input('SERVER >> ')
  c.send(msg);
  #c.close()                # Close the connection

client :

#!/usr/bin/python           # This is client.py file

import socket               # Import socket module

s = socket.socket()         # Create a socket object
host = socket.gethostname() # Get local machine name
port = 12345                # Reserve a port for your service.

print 'Connecting to ', host, port
s.connect((host, port))

while True:
  msg = raw_input('CLIENT >> ')
  s.send(msg)
  msg = s.recv(1024)
  print 'SERVER >> ', msg
#s.close                     # Close the socket when done

PS : code is from internet.