Hippo.NET

I have the server installed and running as a service;
For the projects.xml file .

<?xml version="1.0" encoding="utf-8"?>
<ArrayOfProjectConfiguration xmlns:xsd="http://www.w3.org/2001/XMLSchema"; xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance";>
<ProjectConfiguration>
<ProjectName>XYZProject</ProjectName>
<SourceSafeINI>Z:\xyzvss\srcsafe.ini</SourceSafeINI>
<SourceSafeProject>$/XYZProject.root</SourceSafeProject>
<SourceSafeUsername>duser</SourceSafeUsername>
<SourceSafePassword>somepassword</SourceSafePassword>
<WorkingFolder>C:\Temp\VSS\XYZProject</WorkingFolder>
<BuildCommand>nant.exe</BuildCommand>
<BuildCommandArguments>-buildfile:XYZProject\project.build</BuildCommandArguments>
</ProjectConfiguration>
</ArrayOfProjectConfiguration>

when I am trying to Build with Client i am getting the following error
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Hippo.Client
---------------------------
System.ApplicationException: Unexpected error while getting latest version. ---> System.Runtime.InteropServices.COMException (0x8004D117): The SourceSafe database path duser does not exist. Please select another database.

at SourceSafeTypeLib.VSSDatabaseClass.Open(String SrcSafeIni, String Username, String Password)

at Hippo.Server.Server.GetLatestVersionAndBuild()

at Hippo.Server.RemoteControl.GetLatestVersionAndBuild()

--- End of inner exception stack trace ---

Please not the SourceSafeUsername value i have given in projects.xml. for that value i am getting the message 'The SourceSafe database path duser does not exist'.
Seems to me that the server is using the SourceSafeUsername value as the database path
Could some one please help me , with the correct configuration so that i can remove this error.