Your somehow connecting to yourself with 127.0.0.1 showing in your connections window.
Highlight the 127.0.0.1 connections and hit 'Remove' and if it comes back zap it again. I don't have a more technical explanation, but it happened to me some months ago and no-one had any explanation then, but it was the only way to get rid of it. When I did, I could connect again - no trouble