Unable to Import WebService Model from EP 7.0 WSnavigator

We have upgraded our EP quality server from EP 6.0 SP 19 to EP 7.0 SP18.

After up gradation, we are not able to import web service model in NWDS 2.0.19 through both the following options:

1. Import Adaptive Web Service Model

2. Import Web Service Model - DEPRECATED

We are getting the error messages while importing the model from EP web service Navigator.

"No service available or local server not accessible .Check proxy seettings

(Window ->Preferences->WorkBEnch->Proxy Setting)and J2EE Engine settings(Window -> Preferences -->SAP J2EE Engine)"

Please tell me how to resolve this..

Regards:

Hanif