Sqlplus hangs up remotely after entering the credentials.

Hi Experts,
Sqlplus hangs remotely after giving the credentials. There are two homes in same Windows machine.Earlier one home was with Oracle 10g R1 and other with R2.
I upgraded the R1 release to R2.
Now the database which was earlier running on R2 has started giving this strange problem when trying to connect remotely, tnsping is successful to this database, sqlplus just hangs up no error nothing.
Has any one faced this kind of problem or knows how to resolve this, please help me out.
Thanks in Advance,
Bhavesh

Remotely :
H:\>sqlplus
SQL*Plus: Release 10.2.0.1.0 - Production on Fri Jun 13 19:04:51 2008
Copyright (c) 1982, 2005, Oracle. All rights reserved.
Enter user-name: system/oracle
ERROR:
ORA-12560: TNS:protocol adapter error
Locally when using @:
C:\Documents and Settings>sqlplus
SQL*Plus: Release 10.2.0.3.0 - Production on Fri Jun 13 18:20:41 2008
Copyright (c) 1982, 2006, Oracle. All Rights Reserved.
Enter user-name: system@lbu1
Enter password:
Thts the hanged state..

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