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Toad connectivity issue with oracle 11gr2

Dear Team,

Kindly find the details below and help me solving my issue.

Oracle DB Version
Oracle client Version
Toad version
db server os MS 2003 enterprize eddition
client machine os win xp/win 7

When we try to make connection with db server from client machine using taod
we found following issue

in a first click toad is unable to connect and nothing is displayed on the screen.
On 2nd click it opens two windows (2 sessions). we want to solve this issue and need your quick support.Kindly also answer my following questions.

1.Is toad compatible with 11gr2 (
2.Do we need to install 11gr2 client? we need to upgrade toad to higher version.

Thanks in advance for your quick support…