>We installed WinNT option pack 4.0 for our IIS in a server with a proxy running. Installation is successful, proxy works well but our local intranet doesn't. We are using the default web site to be our local intranet but we can't make it run. It gives an error URL could not be retrieved; access is denied when trying to invoke http://localhost/ even in the server itself. What are we missing folks? We bought Web Connection and we can't make it useful because of this problem. I already sent an e-mail to west-wind but no reply as of this writing.
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First check to see if localhost is a valid entry in the HOSTS file in the System32\Drivers\Etc directory. The default HOSTS file should 1 entry:

localhost 127.0.0.1

Erik is right. This signifies the machine you are on not your Intranet server unless it happens to be the server itself. This is a loopback IP address for your machine. Also check the browser configuration to see if you have the "Bypass proxy for local addresses" checkbox checked. You shouldn't need the proxy server for anything local.

Good luck!