Apparently this problem can be caused by conflicts with IIS, if you have IIS installed. There are other issues that can cause IE9 127.0.0.1 resolutions to fail as well.
The common steps offered by Microsoft to resolve this issue, or any issues where IE is unable to resolve a website, involve resetting the IE9 browser settings:
- Open Tools -> Internet Options
- Click on the "Advanced" tab.
- Click "Reset"
- Click the checkbox for "Delete personal settings"
- In the Reset Internet Explorer Settings dialog box, click "Reset".
- When changes are done, click "Close" and then restart the browser.
If after following these steps, the problem still hasn't disappeared, repeat the above steps, except instead of clicking "Reset" in the "Advanced" tab, click "Restore Advanced Settings", which is located below "Reset".
This tech guide describes the steps for resetting the advanced settings on Windows 7 for IE9.
NOTE: Resetting will reset IE to factory settings. You'll lose your existing configuration and any settings or data in IE. Judging by your love for this browser, I'm assuming there isn't any data in there that you care about. ;) However, be sure you're okay with this before following these steps
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