I would recommend turning off Norton and testing your app again. If it still doesn't work then I would check .NET security settings on your machine. To get the settings, go to the Control Panel/Adminstrative Tools/Microsoft .NET Framework Configuration. It could be that the installation made adjustments to the settings.
Here's what I had to do: I completely uninstalled NIS. When ask to save setting I answered NO. Basically, I left no trace of NIS on my machine.
Then, I checked all my C# Apps again to make sure they worked. In fact, they did.
I reinstalled NIS and accepted all default settings. I believe it sets security at a medium level. As I launched different applications I was being prompted whether to allow certain apps to access ports to the internet. Because I was using SQL 2000 my C# App looked as if it was accessing the internet. I allowed to access the SQL Server port and it worked perfectly... Of course, that was after allowing SQL Server to accepted connections on port 1433.
Since, I had set my security level high at first (as recommended by most security experts) NIS wasn't prompting me for any message as to whether to allow apps to access the internet. To NIS, 127.0.0.0 (your local address) is considered the internet. All other software firewalls will allow 172.0.0.0 to be access without any problems. NO, NOT NISC!!! (doh!!)
The funny part is that even after disabling NIS (security and NAV) my .NET Apps were still not working. That was very strange.
But in any case, everything is working fine, now. Thank you for all your input.