Microsoft Loopback Adapter

http://download.oracle.com/docs/cd/B19306_01/install.102/b14316/reqs.htm#BABGCEAI
Notes from Oracle Documentation.
To install a loopback adapter on Windows 2003 or Windows XP:
1. Open the Windows Control Panel.
2. Double-click Add Hardware to start the Add Hardware wizard.
3. In the Welcome window, click Next.
4. In the Is the hardware connected? window, select Yes, I have already connected the hardware, and click Next.

5. In the The following hardware is already installed on your computer window, in the list of installed hardware, select Add a new hardware device, and click Next.

6. In the The wizard can help you install other hardware window, select Install the hardware that I manually select from a list, and click Next

7. From the list of hardware types, select the type of hardware you are installing window, select Network adapters, and click Next.

8. In the Select Network Adapter window, make the following selections:
Manufacturer: Select Microsoft.
Network Adapter: Select Microsoft Loopback Adapter.

9. In the The wizard is ready to install your hardware window, click Next.

10. In the Completing the Add Hardware Wizard window, click Finish.

11. In the Properties dialog box, click Use the following IP address and do the following:

12. Enter the IP Address (192.168.2.130)

Subnet Mast (255.255.255.0)

Default Gateway (192.168.2.1) -> Click OK

13. You can check with PING utility.

And done, you have your LOOP back adapter working, its more useful if you are using a computer/workstation or a LAPTOP with DHCP or wireless.