This sounds like a problem with the restored tab. Go to the Internet Options tab (ALT, T, O), go to the "Advanced" tab, then "View" and uncheck the box "Enable automatic crash recovery . "
You can also try adding "localhost" as a trusted site or (worse :) disable "Protected Mode" for all zones on the "Security" tab (at least for debugging).
If this does not solve the problem, it may be an inaccessible port.
Disable all software firewalls, check netstat -a at the command line to make sure that the correct port is being listened. If it displays the port as listening, the only thing I can think of is the hosts file in the% systemroot% \ system32 \ drivers \ etc \ directory. Set "127.0.0.1 localhost" to split.
If the port is not listed as listening, this is a VS or service issue. This VS 2005 page should cover any related reasons .
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