Cannot connect to the my ejabberd server. Connection Timeout

I am working on an EC2 instance with Static ip and am trying to connect to my ejabberd server installed on the same box.
I am also using xmpp4r and the problem i am facing is when I try to connect to the server with a client the connection times out.

Code snippet
client.connect
RESOLVING:
_xmpp-client._tcp.jabber.xxxxxxx.com (SRV)
CONNECTING:
jabber.xxxxxxx.com:5222
Errno::ETIMEDOUT: Connection timed out - connect(2)
from /usr/lib/ruby/gems/1.8/gems/xmpp4r-0.5/lib/xmpp4r/connection.rb:66:in `initialize'
from /usr/lib/ruby/gems/1.8/gems/xmpp4r-0.5/lib/xmpp4r/connection.rb:66:in `new'
from /usr/lib/ruby/gems/1.8/gems/xmpp4r-0.5/lib/xmpp4r/connection.rb:66:in `connect'
from /usr/lib/ruby/gems/1.8/gems/xmpp4r-0.5/lib/xmpp4r/client.rb:70:in `connect'
from (irb):6

Im not sure why this is happening and there are no errors in my log.
#ejabber.log

=INFO REPORT==== 2010-07-15 10:21:25 ===
I(<0.302.0>:ejabberd_listener:116) : (#Port<0.464>) Accepted connection {{120,61,34,11},40322} -> {{10,193,127,228},5280}

=INFO REPORT==== 2010-07-15 10:21:25 ===
I(<0.295.0>:ejabberd_http:123) : started: {gen_tcp,#Port<0.464>}

=INFO REPORT==== 2010-07-15 10:21:26 ===
I(<0.302.0>:ejabberd_listener:116) : (#Port<0.465>) Accepted connection {{120,61,34,11},40323} -> {{10,193,127,228},5280}

=INFO REPORT==== 2010-07-15 10:21:26 ===
I(<0.295.0>:ejabberd_http:123) : started: {gen_tcp,#Port<0.465>}

but no connections to 5222.

My jabber server runs on a subdomain jabber.xxxxxx.com and points the site ip. I have setup ejabberd before without any issues on similar EC2 Ubuntu instances but im completely lost now. I have tried reinstalling ejabberd too.

Thanks in advance for your help.

Sid