Problem:

Internet Explorer can not display the page.

Localhost not able to establish a connection on port..

getting the above messages when trying to run my application locally. I got this problem after installing this week's updates to Vista.  It messed up VS developer server settings. 

Apparently it was due to Definition Update for Windows Defender - KB915597 (Definition 1.53.256.0)

Solution:

Go to c:\Windows\System32\drivers\etc\ and open the file named hosts with a text editor and search for the line containing "::1"  and change "::1" to ":::1" by adding an extra ":" 

It solved the problem on one of my development machine. If it didn’t work, leave a comment.

Update:

Another solution from visual web developer team.

Update:

Same problem is discussed here and here