Lol, no, of course a connection is needed by the hosting OS so that the emulated OS can actually connect. I'm not sure if the connection has to be enabled, though.
No, web service as in a compiled .dll file with implemented methods to access the SQL database located on the same server.
And I managed to finish it all before the deadline. The deadline was midnight, I was done with all of it around 21:30. <3 A collegue took my code, copy pasted it and edited what she needs (I told her to do so) as she couldn't run the emulator for some reason. We compiled and debugged it on my machine and submitted her project solution as well. ^_^
The actual biggest problem was running the web service and actually being able to connect to my machine. She wasn't able to set it up right on her machine. If she could have run her emulator, she could have connected to my web service, though.