rsync bug?

[WHNHosting]

I been using Rsync for a short while now and learned only how to setup a basic rsync server and rsync on another.

When im on machine 2, i get this error

rsync: read error: Connection reset by peer
rsync error: error in rsync protocol data stream (code 12) at io.c(177)
rsync: connection unexpectedly closed (2901 bytes read so far)
rsync error: error in rsync protocol data stream (code 12) at io.c(165)

this happens on every and any machine i try of off. All these machines are internal (machine1 ----> my switch ---> providers
switch ----> machine2)

Im not so sure they even go though providers switch, either way, its all internal.
all servers have

rsync  version 2.5.7  protocol version 26
Copyright (C) 1996-2002 by Andrew Tridgell and others
<http://rsync.samba.org/>
Capabilities: 64-bit files, socketpairs, hard links, symlinks, batchfiles,
              IPv6, 64-bit system inums, 64-bit internal inums


installed

Any suggestions?