Well, after many hours of pulling my hair out i finally figured out the problem i was haveing with wmp12. It wasn't my pc, wmp12, my network adapter or my internet connection. The problem was my ps3. Long story short... the solution was to hold down the ps power button and reset back to factory settings.
After going through the setup process everything is now working fine.
Also i tried other media servers like ps3 media server tversity etc... I was able to establish connections but it was very choppy and took a long time to load.
After resetting my ps3 these java and other media servers worked fine.
Funny thing is i spent hours searching the web for solutions and no where found this one. Well at least it worked for me.
Good luck to all and i hope this helps some of you.