What the "Host error: Socket Address already in use." means, is that the port (Routers use ports in order to direct signals to certain computers and programs), is already being used by another program. If you haven't, unplug your router (and modem if you have one), to clear the cache. Also try to make sure that other programs aren't using said port. And are both of you hosting at the same time, or are you hosting, and your friends conencting?