Unable to run a web project Debug menu on a remote Server

Steps To Reproduce:
1. Install NB 6.8 latest FCS candidate build on win7 with jdk1.6.0_17
http://smetiste.czech.sun.com/builds/netbeans/6.8/fcs/latest/
2. Start the IDE, registered a remote V3 server
3. Create a web project -> select remote server for the server runtime
4. Right-click the created project, select Debug menu
BUG:
   Output display exception message as described below:  
   Created dir: C:\Users\Davis Nguyen\Documents\NetBeansProjects\WebApplication3\dist
Building jar: C:\Users\Davis Nguyen\Documents\NetBeansProjects\WebApplication3\dist\WebApplication3.war
debug:
connect-debugger:
C:\Users\Davis Nguyen\Documents\NetBeansProjects\WebApplication3\nbproject\build-impl.xml:666: The following error occurred while executing this line:
C:\Users\Davis Nguyen\Documents\NetBeansProjects\WebApplication3\nbproject\build-impl.xml:672: 
org.netbeans.api.debugger.jpda.DebuggerStartException: Connection timed out: connect
        at org.netbeans.modules.debugger.jpda.JPDADebuggerImpl.waitRunning(JPDADebuggerImpl.java:354)
        at org.netbeans.api.debugger.jpda.JPDADebugger.attach(JPDADebugger.java:263)
        at org.netbeans.modules.debugger.jpda.ant.JPDAConnect$1.run(JPDAConnect.java:223)
        at org.openide.util.RequestProcessor$Task.run(RequestProcessor.java:602)
        at org.openide.util.RequestProcessor$Processor.run(RequestProcessor.java:1084)
Caused by: java.net.ConnectException: Connection timed out: connect
        at java.net.PlainSocketImpl.socketConnect(Native Method)
        at java.net.PlainSocketImpl.doConnect(PlainSocketImpl.java:333)
        at java.net.PlainSocketImpl.connectToAddress(PlainSocketImpl.java:195)
        at java.net.PlainSocketImpl.connect(PlainSocketImpl.java:182)
        at java.net.SocksSocketImpl.connect(SocksSocketImpl.java:366)
        at java.net.Socket.connect(Socket.java:525)
        at com.sun.tools.jdi.SocketTransportService.attach(SocketTransportService.java:204)
        at com.sun.tools.jdi.GenericAttachingConnector.attach(GenericAttachingConnector.java:98)
        at com.sun.tools.jdi.SocketAttachingConnector.attach(SocketAttachingConnector.java:72)
        at org.netbeans.api.debugger.jpda.AttachingDICookie.getVirtualMachine(AttachingDICookie.java:220)
        at org.netbeans.modules.debugger.jpda.actions.StartActionProvider.doStartDebugger(StartActionProvider.java:176)
        at org.netbeans.modules.debugger.jpda.actions.StartActionProvider.access$100(StartActionProvider.java:74)
        at org.netbeans.modules.debugger.jpda.actions.StartActionProvider$1.run(StartActionProvider.java:154)
        ... 2 more
BUILD FAILED (total time: 30 seconds)