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You need to set trace_level_client, etc, in the CLIENT machine sqlnet.ora.
It works when you use sqlplus on the database because you're actually using sqlplus and the oracle home as a client in that case.
Hope it helps.
Edited by: gdarling on Jun 7, 2012 11:13 AM
-- If you want to trace activity to/from the client machine, from the server point of view, then you'd set trace_level_SERVER, trace_directory_SERVER, etc. Basically, the database home is both a client, and a server, depending on what you're doing exactly.
On the client machine you can only set trace_level_CLIENT, because a client machine is only a client.