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You need the host's external IP, not the internal.
You can find your external IP by using this http://www.whatismyip.com/
If they're getting the same IP, they might be living together.
Originally Posted by Cathaoir
Are you guys under the same network? If you are, you must use your internal IP address. (Google how to find.)
Even though it's not required, I recommend you use the Terraria Server Software from here.
1. Run the Terraria Server, select what world, what port, and what your password will be.
2. a. If you and whomever you wish to play with are in separate networks, you need to port forward.
b. If you are under the same network, you do not need to do this.
c. An alternative to A is to use Hamachi, where you would create a network, and have whomever you wish to play with join your Hamachi network.
3. Check your firewall, and make sure that the port you are using for Terraria is not closed or denied. (Typically port 7777.)
Following these steps should get your server working correctly.
This. Get Hamachi and ask him to create a network on Hamachi, with a password, preferably if needed.
Originally Posted by Akemii
Punch in his Network Name and password if needed, then when you're joined onto his network, then tell him to host it.
Type in the IP of his computer you see on Hamachi when he's hosted it, and it should let you connect to his hosted world.