VSS comes with both server and client components. The client components should be installed on your PC and
you should connect to them there. At least this is what I recall from my Eclipse installation (unfortunately, it is at work and I'm at home right now so I can't verify that, and even if I was at work by current Eclipse setup might not include the VSS connection). So are you saying that the client components are on the remote machine? If so, did you mapped a drive or are you using a network file name (e.g. \\servername\share\vss)? Try using a mapped drive.
By the way, sharing the client in this fashion still goes against the license, especially if several people will be doing the same thing. Only if you sit at the console of the machine with the client software, and log into the machine and use the software there are you covered.