Well, I did not delete the old source before reinstalling, I just renamed the directory, so I had an 'old' copy of dnshipproxy avialable to copy over (though I still wonder where it went and if all I need is this script).
So I have hipd and 'hipfw -Aid' running on client and server. dnshipproxy is running on the client.
telnet server.testfails. I do not see any HIP traffic in the tcpdump. hipfw on the server finally crashes.
oh, 'hipconf run normal telnet server.test' does work.