With "pals" the guide just means "friends".

There are a few things to check:

Could you check if you've selected "other Foxes nearby" in options->network?

Also you need to enable "allow to be Ultrapeer" and "force to be ultrapeer" on the same options-pane.

If you want to connect only behind your LAN, IP+Port are these:

192.168.1.38:33593
192.168.1.40:33595

These are also the ones which should go into favourites (because they are static).

That both have the same IP to the outside is normal (both share one connection). The Port shouldn't change, though.

You can try setting it somewhat higher, like 34595 (you could have a port collision in the network).

You need to make sure, that all Firewalls allow Phex through (on the port selected on that computer).

I hope this gets you connected.

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