Since you didn't make any mention of it, I think the missing piece is very easy.
You have to run rsync in daemon mode on 192.168.111.17. Just setting up the appropriate control files isn't enough.
You can use "lsof -i" (run on 192.168.111.17) to check whether it's listening. (Use netstat if you don't have lsof, but as soon as convenient, get lsof. GOOD program.)
If you DID have it running, and just forgot to mention it, we'll have to back up and regroup. I don't want to go into all the debug stuff unless I have to, though, so I'm trying the easy answer first.
Hope this helps,