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Do you have multiple oracle homes? If this is the case, you want to make sure that the tnsname.ora file associated with the oracle home associated with the Disco Admin tool is set-up properly.
Are you logging in as the EUL owner or as an APPS user (assuming you have an APPS implementation)? There are set-ups that need to performed before this will work (which are explained in the article below....e.g. the secure file).
Have you looked at the Knowledge Base article, "Questions And Guidance For Troubleshooting Common Discoverer Desktop and Administrator Connection Issues [ID 415614.1]"?