I've just updated Mac 10.3.1 to 10.3.2 via software update, restarted etc etc and now when I try to access the site I'm developing locally I get a Server 500:

[code=CANT_CONNECT_LOOPBACK] Cannot connect due to potential loopback problems

It happened a few weeks ago in IE5, but not in Safari and if I put localhost instead of in IE it worked fine. I've tried restarting Apache and I've tried all possible host names, anyone ever come accross this before and know what I should look in to fix ??? There's nothing in my error logs and I haven't changed anything in my httpd.conf and wouldn't imagine the update has.

the weird thing is though, if I try 127 in IE I get the same error, if I try localhost everything works fine. Both in safari fail ?? ? I don't won't to use IE for testing my code, I'm planning to use CSS1/2 and standards so it won't display properly!!! Is this a safari problem ????

I've turned off my firewall and that didn't help either and I've tried logging in as other users but that didn't help either.

Any ideas ??