The remote host cannot be connected during source code debugging.

Http://www.eoeandroid.com/thread-23435-1-1.html

 

First, select a debug process in ddms. Click a process and you will see a green bug icon before the process displayed in ddms.
Then you can use 8700 for debugging.
Port 8700 indicates that you will debug the selected ddms process. You have not selected any process in ddms, so closedconnectionexception will pop up.
See:Http://source.android.com/source/using-eclipse.htmlMedium:
Note that port 8700 is attached to whatever process is currently selected in the ddms console, so you need to sure that ddms has selected the process you want to debug.
(Note that port 8700 is used to debug any process selected in ddms. Therefore, you must confirm that the process you want to debug has been selected in ddms.

You can also set the port number of the process for debugging. The port number of each process is displayed in the last column of ddms.