I have had a number of customers who have broken our applications, which have daemons listening on localhost, by editing their /etc/hosts files and removing the localhost entry. I guess various people edit /etc/hosts to prevent applications from talking to licensing servers, and in the process happen to accidentally blow away the localhost entry (since these customers don't know what they're doing). We had this happen enough that we eventually stopped using "localhost" and started using 127.0.0.1 in our code.