Perhaps you can enable SQL*Net tracing by setting "trace_level_client = USER" in the sqlnet.ora configuration file? The trace file should allow us to determine what is happening.
Edit \Network\Admin\sqlnet.ora using notepad or wordpad
Change trace_level_client=OFF to trace_level_client=USER (or add this line)
Save the sqlnet.ora file
Run PL/SQL Developer and try to connect
Tracing file is located in PL/SQL Developer directory (sqlnet.log).
Please send this file to me.
Change trace_level_client=USER to trace_level_client=OFF
I figiured out what's going on. Our tech support decided to push a common host file to our machines and not tell us. So the the host file and the tnsnames file were not in sync.