The first step Michael is upgrade to MediaMonkey 4 (use latest Beta/release client) as the current version of MonkeySqueeze works with version 4. Then go to the MonkeySqueeze options page: Tools > Options > MonkeySqueeze and click on the User Guide button and then read the user guide. It contains all the info you need to set up MonkeySqueeze.
The error you mention is indicating an issue with the HTTP port number, read the relevant section in the user guide to help you set it up correctly.
If you are still having problems, feel free to post questions in this topic.
Hope this is helpful
Where can I download Beta Version 4 of Mediamonkey??? I can only find the official ones....