Hi Nobody,
You said that machine 1 isn't firewalled, what about machine 2?
Do both LW's have chat enabled? For some reason this seems to help with Direct Connect. In LW tools > options > chat > tick to enable chat > apply > ok. Restart both LWs.
When you're entering machine 1's details into LW's Direct Connect on machine 2, are you entering the IP address followed by :listening port number?
You'll need to make sure that you enter the whole line of data that you see when clicking on machine 1's direct connect tab... eg if you saw
001.001.1.1:6346 then all of that info needs to be entered into machine 2's LW.
You could try changing listening ports. Tools > options > advanced > firewall. Use a port number in the range of 49152 - 65535 (eg 49064 & 65000). Click Apply > ok to save any changes & then restart both LWs.
Of course you'd need to re-do your port forwarding if changing LW's listening port.
Otherwise check out this link in case there's any info I've missed: How to use Bitzi Web Lookup .. & How to use Magnet Links & Direct Connect/Browse/Chat