Ax 4.0 client communication error

Hi All,

I have installed AX 4.0 in my local machine. I have created configuration for the Ax instance based on the AXC file provided by the user. The system throws following error. 

Axapta the server couldn't be reached. This can be caused by a version mismatch between client and server or a network problem. The client will close now

AX version installed in local system : 4.0.1659.35

AX version installed in server : 4.0.2501.116

We could ping to the server from local machine.

Help pls.

Regards,

Raghav.