Comment by marcello.urbani: I also had issues with the plugin: Failed to connect to hosted mode server at 127.0.0.1:9997Just switched to a random port instead of 9997 in the project settings and works like a charm :)
Firefox 3.6, but should be a browser independent issue
For more information: http://code.google.com/p/google-web-toolkit/wiki/TroubleshootingOOPHM -- http://groups.google.com/group/Google-Web-Toolkit-Contributors
