Connection attmempt to AMI failed

I am not very knowledgeable with Linux to figure out what and where to check.

I’ve installed Debian 7.5 on Hyper-V
Network and all is working fine.
I followed this guide
At first I used Debian 7.6 but got the same issue

Anyhow I got to the end and when I go to the Web GUI, the menu appears as text only and I cannot "Apply config"
Looking at the log I get lots of “Connection attmempt to AMI failed” and then:

[2014-Sep-16 22:59:17] [FATAL] (libraries/utility.functions.php:439) - Unable to connect to Asterisk Manager from /var/lib asterisk/bin/retrieve_conf, aborting [2014-Sep-16 22:59:17] [CRITICAL] (admin/ - [NOTIFICATION]-[freepbx]-[RCONFFAIL] - retrieve_conf failed, config not applied

Typing /usr/sbin/asterisk shows that Asterisk is running.

Would appreciate some help.