Problem Unsolved.
I re installed the server on VM running Ubuntu and the issue persists.
Windows 7 > Oracle VMBox > Ubuntu
> Oracle VMBox > Debian
Furthermore I tested the options bellow. Those worked just fine.
Windows XP > Oracle VMBox > Ubuntu
> Oracle VMBox > Debian
Ubuntu > Oracle VMBox > Ubuntu
> Oracle VMBox > Debian
The bottom line is, windows 7 has the issue and I couldn't figure out what it was.
Best wishes,