Cannot connect remotely to postgresql

I have 8.2 installed on 64bit windows 7. I have no problem making a local connection. However, when I make changes to pg_hba.conf such as add:

local all all trust

I still cannot connect through a VPN. On a hunch that my pg server was not using the config files in "C:\Program Files (x86)\PostgreSQL\8.3\data" I changed the port in postgresql.conf to 5433 and restarted the server. After doing this I am still able to connect the server using "psql -h localhost -U postgres -d xxx" I am assuming (perhaps incorrectly) that I shouldn't be able to do this. So now I'm completely stumped. I've searched my computer and can't find any other conf files. I recently set $PGDATA to "C:\Program Files (x86)\PostgreSQL\8.3\data\" and the same in my $PATH for bin. I do notice that lib is not installed in my $PATH but assume that would not affect my connection. Any ideas?