>>Check out S KB article Q255650. From the title, it appears you are experiencing this exact problem.
>>
>>http://support.microsoft.com/support/kb/articles/Q255/6/50.ASP
>
>Man, this is odd. Localhost still didn't work, but after doing what the KB item said, using my IP address as the URL worked for while. Strangely after rebooting, I am back to the same error.

Evan,
Something that was posted in another thread may work. Is the setting to use a Proxy server set? If so, do you have the check box to bypass the proxy for local addresses checked?