Bummer. This is the problem that I’m having and there has been no response. 🙁
OK. I found the problem.
If you did the same thing that I did, you installed wordpress onto your server, and then used the webbrowser *on that server* to execute wp-admin/install.php.
When this is done, it screws up a setting called “WordPress Address (URL)” and “Blog address (URL)” which take the settings of http://localhost/blog rather than a real URL which should not have localhost in it. You need to fix this by getting into that admin page and changing it to a URL with the real hostname by getting into the admin screens, then in the upper right tab area, click on “Settings”. Then look for the URL settings I described. Upon doing this, and clicking save. The system will force you to relog in. (It even claimed to be doing a new install but I just humored it by letting it go ahead, whereupon it showed some error messages about those DB tables already existing. No fear, it all works out and my blog work was preserved.)
More about what those settings were doing to us:
All along you and I were trying to get it to work from a remote machine, what was happening is that we’d point our browser to http://<host>/blog and it would load index.php. Then at some point, wordpress would return to our browser a new url: http://localhost/blog. (I saw that this was happening and chalked it up to browser weirdness.)
The moral of the story:
It’s best to execute install.php from a remote client and avoid this step. Otherwise, you’ll have to correct it.
[sig moderated]
I had this problem as well. Thanks for the fix, it worked great.