>>Yes i do have a NIC installed ( 3com ). Since system still kept trying to do a 'Dial-up', i disabled it in my profile. But the card is still physically in.
>
>Instead of LocalHost or 127.0.0.1 try the physical IP address of the
>Net card.

Combination of your suggestion and that of Wille ( changing Ie's setting to 'LAN' instead of 'DUN' ) worked, upto a point. Current status is as follows :

PWS is up and running. When i type 'localhost' or 'my_machine_name' or the ip address i have assigned to the NIC in IE , it displays the default page.

BUT, when i run Visual Interdev and try to open a project, the wizard asks for 'Server'. The combo box is empty. Typing the ip address or machine name or 'localhost' all give error 'Unable to connect to server'. BUT when i choose 'Tools-View link on www' from VI menu and type the same in address box, it shows the links !