MSMQ mule flow giving connection refused error

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MSMQ mule flow giving connection refused error

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I'm basically running the sample example from Mule blog for MSMQ.
When I setup MSMQ as global component "Test connection" says Successful, that means MSMQ is setup.
Now using this flow to test sending a message into queue:

<msmq:config name="MSMQ" serviceAddress="machinename/localhost:9000" accessToken="XZodtPym+v6NeZs+Sr4+GK9EGdA=" rootQueueName=".\private$\msmq-demo" doc:name="MSMQ">
        <msmq:connection-pooling-profile initialisationPolicy="INITIALISE_ONE" exhaustedAction="WHEN_EXHAUSTED_GROW"/>
    <flow name="testingFlow1" doc:name="testingFlow1">
        <http:inbound-endpoint exchange-pattern="one-way" host="localhost" port="8091" doc:name="HTTP"/>
        <set-payload value="#[header:INBOUND:http.relative.path]" doc:name="Set Payload"/>
        <logger message=" Sending message: #[payload]" level="INFO" doc:name="Logger"/>
        <msmq:send config-ref="MSMQ" doc:name="MSMQ"/>

When the flow hits MSMQ in console I see this error:

INFO  2014-08-07 18:00:41,299 [[testing].testingFlow1.stage1.02] org.mule.api.processor.LoggerMessageProcessor:  Sending message: test
ERROR 2014-08-07 18:00:42,888 [[testing].testingFlow1.stage1.02] org.mule.retry.notifiers.ConnectNotifier: Failed to connect/reconnect: Work Descriptor. Root Exception was: Connection refused: connect. Type: class
ERROR 2014-08-07 18:00:42,894 [[testing].testingFlow1.stage1.02] org.mule.exception.DefaultMessagingExceptionStrategy:
Message               : Failed to invoke send. Message payload is of type: String
Code                  : MULE_ERROR--2
Exception stack is:
1. Connection refused: connect ( (null)
2. Connection refused: connect (com.sun.jersey.api.client.ClientHandlerException)
  com.sun.jersey.client.urlconnection.URLConnectionClientHandler:148 (null)
3. Failed to invoke send. Message payload is of type: String (org.mule.api.MessagingException)
  org.mule.modules.msmq.processors.SendMessageProcessor:198 (
Root Exception stack trace: Connection refused: connect
        at Method)
    + 3 more (set debug level logging or '-Dmule.verbose.exceptions=true' for everything)

What may be the cause? Any help or directions are welcome.