Unable to call ejb remotely

I'm using JBOSS 4.0.5GA with ejb3. I am running into weird behavior when running java client from remote machine. If I run it from the same machine where the jboss server is running, no problem. So here is the behavior I'm noticing.
FOr the jndi lookup of ejb, it is connecting the remote server and gets a reference to the ejb. But when I call a method on the ejb reference, it is trying to call a method on the local machine( I mean the same machine where the client is running).
Sounds very weird to me. Any help is appreciated from EJB3 experts.
I upgraded to EJB3 RC9 patch1, but same behavior.
Here is the client code ..

try
{
Properties p=new Properties();
p.put(Context.INITIAL_CONTEXT_FACTORY, "org.jnp.interfaces.NamingContextFactory");
p.put(Context.URL_PKG_PREFIXES, "org.jboss.naming:org.jnp.interfaces");
p.put(Context.PROVIDER_URL,"jnp://remote-host:1099");

InitialContext ctx = new InitialContext(p);
IReportService report = (IReportService) ctx.lookup(
"ejb3/xxx/ReportService");

System.out.println("Got the ejb remote reference = "+report);

System.out.println("report.resubmit.."+report.resubmit(null,0L));

ReportJob reportJob = new ReportJob();
System.out.println("B4 report.submitRequest..");

report.submitRequest(reportJob);
System.out.println("After report.submitRequest..");
}
catch (Exception e)
{
e.printStackTrace();
}