Try specifying the database name and auth credentials all in the connection string.
mongodb://heroku:password@xyz.mongohq.com:12345/app12345678
You could also try connecting using MongoClient and connect as outlined in the driver readme doc.
var MongoClient = require('mongodb').MongoClient,
format = require('util').format;
MongoClient.connect(' mongodb://heroku:password@xyz.mongohq.com:12345/app12345678', function(err, db) {
if(err) throw err;
var collection = db.collection('my_collection');
collection.insert({a:2}, function(err, docs) {
collection.count(function(err, count) {
console.log(format("count = %s", count));
});
});
});
If that still doesn't work double check everything--recreate the user you want to connect with and then copy the connection string from MongoHQ's admin page replacing the username and password you just created.