the window Host file that is messed up:
the file is at this place :
C:\WINDOWS\system32\drivers\etc
And should contain this line : 127.0.0.1 localhost
if it doesn't work then try the following as well:
make the following changes in Eclipse.
Under Window -> Preferences -> Android -> DDMS:
* Set Base local debugger port to "8601"
* Check the box that says "Use ADBHOST" and the value should be "127.0.0.1"