Correct me if you think I did something wrong here:
1. In the menu, go File -> New -> Trace...
2. The "Trace Properties" windows appears, clicke "General" tag page.
3. In the middle of the "General" tag page, there is a section:
"A trace allows you to record events generated by a SQL Server. Select the SQL Server to run trace on."
I choose "<New server>"
4. Input the server information I wants to monitor
5. In "Data Columns" tag, add "Server Name" column, so I know I am monitoring the correct server.
6. Accept other default options, click OK, then the trace runs automatically
I saw the local server name in the "Server Name" column, and I can easily judge that the transactions I got are applications run on the local server.
Are you sure both your servers are SQL SERVER 7.0?