I suppose you try to run on the host rather than on the target. Can you make sure to run on the target by "right click" - "Run As ..." selecting the remote target?
I've managed it.. Wohooo!!
I can't pinpoint the exact problem that I had caused, but I reextracted the archive and it seems to work. I (perhaps) missed out on something. (I think I tried editing the connection and perhaps that's what's causing the error).