Emulator not working with Loop back IP address

Hi All!!,

I am new to Pocket PC programming. I just downloded the EVC4.0, EVC Service Pack 2 and Pocket PC SDK 2003.

I installed it on two different PC. One PC is connected to the network and has some defined IP Address. But,
other PC in not connected to the network. Just has LAN card installed on it.

In the "Tools->Configure Platform manager" I have selected the Emulator settings on both the PC. Only difference
is the PC on LAN shows it's denied IP address and PC not on network shows the Loop back address "127.0.0.1".

Now my problem is: from the second PC (with address 127.0.0.1) when I create the "Hello world" program emulator version and executed it.
Emulator is launched successfully but, it's not downloading the hello world application on the emulator.

Whereas it's working fine on the PC connected to network.

When I detached the PC from the network and tried the same thing it's behaving like my second PC.

Is this a bug in Emulator? Or, I am doing something wrong. Please help me. Thanks in advance.