You don't mention your OS. If it is Vista, an automatic update or certain virus protection apps may have made a change to your 'hosts' file.
Your "hosts" file is what tells your computer that "localhost" should map to "127.0.0.1" so here is where your file is:
C:\WINDOWS\system32\drivers\etc\hosts
Close Visual Web Developer and any browser that is open.
Locate the 'hosts' file using Windows Explorer
Open that file in Notepad under a 'computer administrator account'. The following entry should be present. If it is not, or does not look like the following, add or edit the entry:
127.0.0.1 localhost
Save the file and try to open your default page in IE
-Preston