Dblink do not activate

Dear all
I created dbLink from oracle 8.1.7 to 11g but it does not activate, although SQLPlus is connected from client to remote database and working well. I set global_names = false in 8i and in 11g set sec_case_sensitive_logon = false.
Pls advise
Regards
Muhammad Imran

Dear Donald K. Burleson
as per ur advise i done following
1 - Ping the server
Ans: ok
2 - tnsping the server
Ans: ok
3 - test TNS at sqlplus: sqlplus scott/tiger@mydb
Ans: ok
4 - test inside sqlplus: select * from v$database@mydb
Ans: ok. it gives results
but issue that i face is that when i use mydb (remote db tnsname) in DBLink to configure database link, this link does not activate and give ORA-12640 error upon querying.
here is is my tnsname entry in client database 8.1.7
DBS.LDC.COM =
(DESCRIPTION =
(ADDRESS_LIST =
(ADDRESS = (PROTOCOL = TCP)(HOST = SERVER1)(PORT = 1521))
(CONNECT_DATA = (SID = DBS)(SERVER = DEDICATED))
Now when I query to remote database using select count(*) from mytable@dbs it works fine.
but dblink that uses above tnsname do not activate.
regards
Muhammad Imran

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