well, its kinda hard to provide information to help troubleshoot because I don't know what information is needed. I will provide what I can. Both machines running windows 7.
The server has been set the the DMZ on the router and the software firewall has been disabled. Thus there are no firewall issues with this system.
The client is behind a router, however it is just the client. The client's software firewall has been disabled.

Client config:
remote <Ip of server, deleted for security>
dev tun
ifconfig 10.8.0.2 10.8.0.1
secret static.key

Server config:
dev tun
ifconfig 10.8.0.1 10.8.0.2
secret static.key

The static.key has been places in the config directory as it was complaining it could not find it.

When I run the server I receive:
Mon Feb 13 12:06:29 2012 OpenVPN 2.2.2 Win32-MSVC++ [SSL] [LZO2] [PKCS11] built
on Dec 15 2011
Mon Feb 13 12:06:29 2012 IMPORTANT: OpenVPN's default port number is now 1194, b
ased on an official port number assignment by IANA. OpenVPN 2.0-beta16 and earl
ier used 5000 as the default port.
Mon Feb 13 12:06:29 2012 NOTE: OpenVPN 2.1 requires '--script-security 2' or hig
her to call user-defined scripts or executables
Mon Feb 13 12:06:29 2012 TAP-WIN32 device [Local Area Connection 3] opened: \\.\
Global\{6B316C9D-BAE7-40B1-AE05-42C25C0C8F0A}.tap
Mon Feb 13 12:06:29 2012 Notified TAP-Win32 driver to set a DHCP IP/netmask of 1
0.8.0.1/255.255.255.252 on interface {6B316C9D-BAE7-40B1-AE05-42C25C0C8F0A} [DHC
P-serv: 10.8.0.2, lease-time: 31536000]
Mon Feb 13 12:06:29 2012 UDPv4 link local (bound): [undef]:1194
Mon Feb 13 12:06:29 2012 UDPv4 link remote: [undef]

When I run the client I receive:
Mon Feb 13 11:46:17 2012 OpenVPN 2.2.2 Win32-MSVC++ [SSL] [LZO2] [PKCS11] built
on Dec 15 2011
Mon Feb 13 11:46:17 2012 IMPORTANT: OpenVPN's default port number is now 1194, b
ased on an official port number assignment by IANA. OpenVPN 2.0-beta16 and earl
ier used 5000 as the default port.
Mon Feb 13 11:46:17 2012 NOTE: OpenVPN 2.1 requires '--script-security 2' or hig
her to call user-defined scripts or executables
Mon Feb 13 11:46:17 2012 TAP-WIN32 device [Local Area Connection 3] opened: \\.\
Global\{151932F4-3D6B-41F1-8DCA-8CB3FBBCA931}.tap
Mon Feb 13 11:46:17 2012 Notified TAP-Win32 driver to set a DHCP IP/netmask of 1
0.8.0.2/255.255.255.252 on interface {151932F4-3D6B-41F1-8DCA-8CB3FBBCA931} [DHC
P-serv: 10.8.0.1, lease-time: 31536000]
Mon Feb 13 11:46:17 2012 UDPv4 link local (bound): [undef]:1194
Mon Feb 13 11:46:17 2012 UDPv4 link remote: <Ip address of server, removed for security>:1194

When I ping 10.8.0.1 on the server, all is well when I ping 10.8.0.2 on the server it times out.
When I ping 10.8.0.1 on the client it times out. When I ping 10.8.0.2 on the client it times out.
I do not know what other information to provide. please help or tell em what other information is needed. Thanks.

did you try to disable windows firewall on both machines?

Michael.

your logs dont show them actually making a connection... are you sure they connected?

It was not disabled on the client, however it has been now. However it made no difference whatsoever. What other information is needed to diagnose this?

if you have NAT routers in front of pcs,
did you enable port forwarding for port 1194/UDP to the pcs?

Michael.