I’ve recently had some issue with local websites (in addition to ” localhost”->127.0.0.1). Chrome and Internet Explorer didn’t use the hosts file to solve the other local addresses (e.g: “zendapp.localhost”->127.0.0.1) I’ve previously set.
I’ve had this problem on Windows Seven. After some googling its seems that the issue is not OS-dependent but it’s a default setting, that developers do not like 🙂
Solution: open Internet Explorer, got to “Internet options” -> “Connection” -> “Local area network (LAN)” and untick “Automatic configuration”