Rhino Service Bus using MSMQ message not recieved at backend

Question

I am trying to get a simple client and backend sending a messages using Rhino Service Bus over two machines. I have managed to get it working using Rhino Queues but when I switch to MSMQ and send the message its not received at the backend. I am using a code sample taken from here, and im trying to implement the simplest example 'E1_Hello_world_using_MSMQ_as_transport'.

When sending a message from the client to backend, the message seems to disappear without giving any error (when using endpoint uri 1 defined below). However a new folder does appear in Outgoing Queues named DIRECT=TCP:192.168.35.10\private$\LearningRhinoESB.E1.Backend but the queue messages folder is still empty.

I have disabled firewalls on both machines, and tried a number of variations of endpoints,

1. msmq://192.168.35.10/LearningRhinoESB.E1.Backend <-- this is what worked with rhino queues switching to msmq has no joy
2. msmq://192.168.35.10/private$/LearningRhinoESB.E1.Backend
3. FormatName:DIRECT=TCP:192.168.35.10\LearningRhinoESB.E1.Backend
4. FormatName:DIRECT=TCP:192.168.35.10\private$\LearningRhinoESB.E1.Backend
5. FormatName:DIRECT=OS:192.168.35.10\LearningRhinoESB.E1.Backend
6. FormatName:DIRECT=OS:192.168.35.10\private$\LearningRhinoESB.E1.Backend

Any idea what im doing wrong or how to diagnose the situation? Are there any services that i might need to enable to get this working?