DB is on the same box as what I am trying to connect with but yes, ip address is correct. Tnsnames now looks like

xe =
(DESCRIPTION =
(ADDRESS_LIST =
(ADDRESS = (PROTOCOL = TCP)(HOST = 192.168.1.162)(PORT = 1521))
)
(CONNECT_DATA =
(SERVICE_NAME = xe)
)
)

I am still getting the same error though... :-(