cannot resolve localhost, have to use loopback instead

I am trying to test my asp.net 2.0 website through IIS on a local development machine (Windows XP, SP2).  I cannot view my website using http://localhost/appname but I can using the loopback, http://127.0.0.1/appname.  I have checked that IIS is configured to use port 80 as the default port.  I tried to disable my Symantec firewall but it did not make a difference.  I can ping localhost and it resolves correctly.   Any suggestions?  Thanks.
malawtoAsked:
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malawtoConnect With a Mentor Author Commented:
It turns out there was dial-up software from AT&T Worldnet that was causing the problem.  An uninstall of that program restored the proper functionality.  Thanks your help, callrs.

I'm considering this closed and will be petitioning for a refund.
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callrsCommented:
Check your hosts file (google for this: hosts file xp)
It should have this entry:

127.0.0.1  localhost
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malawtoAuthor Commented:
I do have that entry in the hosts file.
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