Your problem communicating with your altcoin's version of bitcoind. Most likely it is not configured to accept RPC connections from Insight.
Here is the configuration file that I used OK.
# this instance accepts incoming connections
listen=1
# listening port
port=8333
# maintain an extra transaction index that allows the RPC getrawtransaction call to operate
txindex=1
# allow the local Insight process to send commands to this instance
rpcconnect=127.0.0.1
# allow rpc commands
server=1
# change these to what you want - they must match what is coded in Insight
rpcuser=rpctestuser
rpcpassword=rpctestpassword
PM me for more help as I am not watching this forum daily.
-Steve