The problem appears when configuring the server to work with a real host name and not with localhost.
I followed the links at http://wso2.org/forum/thread/19721 but this
The error you are experiencing is due to a random bug in the configuration parser logic which is fixed in the trunk. More information about this fix is available here [1].
Other than that modifying the parameters mentioned in those posts should work.
This bug fix will be included in the next release. But you can get the diff from the following link and apply the fix and compile the corresponding bundle by your self.
HTH.
Thilina
[1] - http://wso2.org/svn/browse/wso2?revision=121681&view=revision