Minecraft.exe server java.net.ConnectException: Connection refused?

Hi i'm setting up a private server for me and my friends on my mac. Now before you ask why don't we use LAN, its because we live far from each other. The server says no connection and when i click on it it says java.net.ConnectException: Connection refused:

server properties are
#Minecraft server properties
#Thu Sep 04 16:43:43 CDT 2014
generator-settings=
op-permission-level=4
allow-nether=true
resource-pack-hash=
level-name=world
enable-query=false
allow-flight=false
announce-player-achievements=true
server-port=25565
max-world-size=29999984
level-type=DEFAULT
enable-rcon=false
level-seed=
force-gamemode=false
server-ip=192.168.0.3
network-compression-threshold=256
max-build-height=256
spawn-npcs=true
white-list=false
spawn-animals=true
hardcore=false
snooper-enabled=true
online-mode=true
resource-pack=
pvp=true
difficulty=1
enable-command-block=false
gamemode=0
player-idle-timeout=0
max-players=20
max-tick-time=60000
spawn-monsters=true
generate-structures=true
view-distance=10
motd=A Minecraft Server

I have Java 7 installed and put in the server ip. ( internal ip address ).
Please be as detailed as possible please.

Firstly to have a server running on your pc and for people to be able to join you'll have to use your external ip and not your internal as you have stated you are using here, if you go to http://www.whatismyip.com/ and use that ip in stead of " server-ip=192.168.0.3 " - then for people to join your server you'll have to give your friends that ip from the website.

Also have you forward all the ports on your mac/router? http://wiki.bukkit.org/Port_forwarding

is this a bukkit server or just a plain mc server?

and have you considered maybe renting server space from one of the many mc server companies out there? They are fairly cheap for a small 3-5player server this maybe a easier option with less stress

Hope this helps feel free to reply back and ill try and help more if I can