I have the same issue, when I start Phex it goes through the Host cache and fails to connect to even one host.

Mac OS X 10.5.6
Java 1.6
Phex 3.4.0.110
I tried with various ports, when I try to connect to for instance
127.0.0.1:6346
I get a page with "Shared File Export" and a list of my shared files, but no connection to anything at all.

My LimeWire and FrostWire both work perfectly using the same port. Help!