Adding Direct Resource in New Project Fails with Communications Failure

All of my old 5 and 5.1 apps work fine. However, if i create a new, blank 5.1 app and add the Direct Resource, and point it to the SAME resource that worked in my other applications, I get "Communications Error" Remoting spec failed to load

then, usually, SA Crashes!

Bruce

Adding Direct Resource in New Project Fails with Communications Failure