I investigated this further.
Lo and behold, I can remote in just fine if connected to VPN (I'm using Server's VPN), but not if I'm on the same WiFi network....
Perhaps file a bug report with Apple, I'll do the same, hopefully they'll fix it in the next update, I usually VPN in anyway so it's not a huge deal, as long as I can get in *somehow*.
EDIT: I had another thought... It's possible the port for remote administration is being blocked. This would explain why you can see the Mac server, but cannot actually connect to it via Server app.
I enabled port forwarding for ALL ports on my router, and pointed them to the IP of the server, and now I can remote in locally or through VPN... or without VPN!
Since the Server 3 release, I've been having difficulty with forwarding the correct ports, specifically for VPN, and so in order to test the VPN theory from you, I had to forward all ports (that's the only way I've been able to VPN in), but didn't realize that could very well have also opened the port for remote admin for Server.
According to Apple's website (http://support.apple.com/kb/ts1629), there is a special port for remote administration of the Server app, however I am forwarding it and have been (it's TCP 311)... Perhaps Apple changed the ports (or screwed them up in the code) and didn't change their kb article to reflect it...
In any event, it seems that forwarding all ports (not exactly smart, I know) will solve the issue. Give it a go, let me know if it works for you!
Message was edited by: jaygatsby1123