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xampp localhost problem

Hi,
i installed on vista machine the XAMPP Windows 1.6.7 on c:/xampp folder.
I have disabled the UAC control. The apache and mysql services works fine.

I noticed that the
http://localhost 

does not work but the
http://127.0.0.1 works fine.

I see that the problem can be solved when i erase the value " ::1    localhost "  in the c:\windows\system32\drivers\etc\host  file
What does means this entry?! Is it essential or not?
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