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What is the difference between 127.0.0.1 and localhost? When should I use one rather than the other?

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What is the difference between 127.0.0.1 and localhost? When should I use one rather than the other?

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The two terms are interchangeable. The term localhost is a designation meaning this computer. 127.0.0.1 is the loopback IP address also indicating this computer. The Configuration Wizard will populate 127.0.0.1 in the browsers and the manual configuration uses localhost. Either configuration is correct. My IP address does not change in my AOL browser or show up in the Configuration Wizard. AOL does not accept proxies. If you use this browser please only visit trusted sites that you are comfortable visiting without encryption or anonymity. The Configuration Wizard will not configure my AIM. AOL does not accept proxies. This applies to both the Instant Messenger and the browser. The Configuration Wizard will not configure my Windows Messenger. Windows Messenger is configured when you secure the Internet Explorer browser.

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