It is a made up number above 1023 you can not use any thing less than 1023 because these are well known ports reserved for other functions like email, web browsing and others. Pick something like 9999.
You are all over the place 8080 is the internet, 8081 is your default isp.And if you want a quick answer then goto start-run-cmd-then type in ipconfig-then roll around that to see your ip address-do the same to find his-have him do ipchicken.com to see what his actual IP.
I think you are confused. This is an Internet Enabled Device which means it uses TCP/IP to connect. They just want a port that you want to use for the device much in the same way Web Cams work. You can't use well known ports or it will mess up the object that uses that port. I.E. if you had used port 80 then your Web HTML Pages would quit working or if you used port 25 then your POP3 email would quit.
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