if you have no proxy, you added one host and even successfully pinged it, but in the URL you used a slightly different host name. Please check.
They must much exactly. For example if the url spells http://mywebserver you have to have wwwmywebserver in the hosts, not http:// not mywebserver

If you use IP instead of hostname, host header will not be issued by browser and hostname-based virtual hosts won't work.

Something strange. I decided to purchase the full version of PhpEd. I installed it over the trial version installation. Then, the debugger started working when using the hostname in the url instead of the ip address. At first I thought that maybe it was not really doing remote debugging. So, I looked at the project settings. They were the same. Then, I uninstalled DBG from the server and tried again. Debugging did not work. So I reinstalled it on the server, and it then it worked. So for some reason it works for me with the full version, but not with the trial version. Thanks for all your help!

what your recently installed is build 5029 that comes with many fixes over 5025.