To fix the problem you have to disable loop-back on your network adapter.
To get there go to Control Panel > Network and Sharing > Click change adapter setting > right click the active network and choose properties. This is for Window 7, for other OS the naming is slightly different but you should be able to there if you understand where it is located in general. It should be along the path of "Control Panel\Network and Internet\Network Connections".
You should see Loop-back as one of the items. Untick that and you are good to go.
To get there go to Control Panel > Network and Sharing > Click change adapter setting > right click the active network and choose properties. This is for Window 7, for other OS the naming is slightly different but you should be able to there if you understand where it is located in general. It should be along the path of "Control Panel\Network and Internet\Network Connections".
You should see Loop-back as one of the items. Untick that and you are good to go.