quote:
127.0.0.1 should come only when computer has never been assigned an IP...
well, AFAIK
Not quite. The 127.0.0.1 address is the loopback address, and this will always be present in the TCP/IP stack, although it should never be bound to a card. If you issue a "route print" you will see the 127.0.0.0 network and the 127.0.0.1 address.

It is a very important address, as it is effectively internal to your TCP/IP stack. This means (for instance) that you can test that you have networking installed by pinging this address, even if you don't have an active LAN or dial-up connection.

You can also develop network applications / web pages and whatever else while offline.

When you are connecting network applications on the same machine, such as a web browser and server, or an application to a database via pipes or ODBC you should always use the loopback address. This way the traffic won't hit the card and/or the network, and processing will be far faster.