Hello Tarneet,
I am using moodle with the version 2.8.5, the openmeetings-moodle plugin (version 1.7.4) and and an openmeetings server (version 3.0.5) and it works fine.
(1) wich version of openmeetings (OM), wich OM-Moodle-plugin version and wich java version do you use?
(2) Can you login without problems to your OM server directly?
(3) You are using moodle and openmeetings on two different machines? If so, could you disable the firewall(s) between them?
Thanks & Greetings,
Michael