Debug RSE server association issue

We finally got our PTF's caught up (I think) and I'm trying to debug a program 
using the debug perspective.  Debugging as 'My iSeries Program' generates a 
message telling me to start the communications daemon and the RSE server on the 
iSeries. 

I think the daemon is running because I have the icon in my system tray.  I 
started the RSE server using the connection name from the message (actually 
copied and pasted the command).  I still get the error.

The actual message description is:
A request to run an interactive command or program was received for the RSE 
connection Development, but no interactive job is currently associated with 
this connection.  To associate an interactive job with this connection:
                1.  Start the iSeries communications daemon if it is not 
already running.  Select the pull down                         menu from the 
Remote Systems view and select iSeries -> Start Daemon
                2.  Open a 5250 emulator,
                3.  Run the CL command STRRSESVR NAME(Development)
                4.  This will associate the interactive job with this 
connection, causing this dialog to close                          and your 
interactive command or program to run.

Does anyone have any ideas?

Rick