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I am trying to share a database between two computers with no luck. Once PC is Vista, One is XP. I'd like the database on the Vista, but I have tried it both ways with no luck. I get the same error.

Both machines run local databases fine.
Both machines running PT3 and Postsql 8.3
Both machines can ping each other, both machines have virus and firewall OFF
Vista machine = 192.168.26.163
XP machine = 192.168.26.155

First, I edited pg_hba.conf by adding: host all all 192.168.26.0/24 md5 (please confirm no # sign - i actually tried both ways)
Then, I edited postgressql.com by adding: listen_addresses = '*' (again confirm no # sign)

I did this on both comptuers and then from each of the other computers tried to access the remote database.

Database, database mangemnet, new:
Name: default
Database: default
server:192.168.26.163 (or 155)
user: postgres
port:5432
password: dbpass

Whether I hit create or browse databases, after 2 minutes it times out with following error:

Unable to create PostgreSQL database: PT3_2008_10_19_185049
Reason: Unable to login to database (template1). Reason: could not connect to server: Connection timed out (0x0000274C/10060) Is the server running on host "192.168.26.163" and accepting TCP/IP connections on port 5432?

PLEASE HELP.

I can confirm you should remove the # from the start of the lines - the # comments out the line (i.e. says to ignore the line).
You should only have the postgres service running on the server computer (where you want the DB to be).
I guess you've read this post? How To: Network PostgreSQL Database

I suspect it's a vista security issue, but I'll get someone to have a look at this thread.

I understand that I only need Postgres on one machine. I too have a feeling it is Vista. So I tried to load DB on XP and access from Vista, to see if that changed anything. Same reponse in that direction.

If necessary, I can set up another XP machine and see if it works from XP to XP. But I am not sure my PT3 license will allow me to run a 3rd machine.

Plus, I really need to get it to work on vista machine, so this would only be troubleshooting step anyway.

I hadn't noticed, but the guy I was expecting to reply wasn't around yesterday; he's on now and catching up so I expect you'll get an answer soon(ish).

Do you have a firewall software running on the machine that has the server? If so, did you set it to allow connections on port 5432?