I'm an amateur here, but the error may be in how you specified your testing server. If you are like me, you are editing your site on a local machine and DW is updating your server machine using the LAN/Network option. In that case the site manager automatically sets the testing server to a directory path, like in you post, rather than the web address for your site. Set the testing server to the url of your site, plus the directory where the site files live - http://yourdomain.com/thefolder
This might solve you problem.