Can you please confirm few things:
-Is it fresh installation of agent handler or upgrade?
-Where are you installing agent handler? Is it in DMZ?
-Which authentication did you use for ePO and DB connection (SQL or Windows)?
-What is the version and it's patch of ePO you are using and you installing agent handler?
You may also perform a udl test the confirm the DB connection following the article KB70929 : http://kc.mcafee.com/corporate/index?page=content&id=KB70929
Thanks for reply.
The problem was resolved. This is new installation with epo4.6 version.
The problem was port used for SQL database communication. The port i used for this communication was already used by some other application.
I changed SQL port in EPO and installed remote agent handler. It started working fine.
and hey this is not in DMZ , its in level-3.