IE8 No Localhost offline

[klemasters]

I just installed 1.7.4 on my computer, offline, a few hours ago. Immediately after installation I opened IE8, went to http://localhost, and got the Xampp front page. I then installed Joomla 1.6, went to http://localhost/joomla, and got the Joomla installation opening. I then did a restart. Xampp control panel shows Apache and MySql running. When I open IE8 and try to go to http://localhost, I get an IE message in a popup window saying the page can't be accessed because I am offline and asking if I want to connect to the Internet or stay offline. If I choose "stay offline" I get a message in the IE screen saying the page is not available offline. If I go online my Xampp opening screen will then come up. I do not understand this AT ALL. Why would it have been available offline immediately after installation but now I can't access it without connecting to the internet???

[JonB]

Did the Joomla installer create a redirection for the 'home page' of your site?