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You may already know this, but it's worth getting the word out. Do not just deny routing to 127.0.0.1. 127.0.0.1 is merely the conventional "localhost" address; however, ALL 127.x.x.x is "localhost". You can check this now on your local command line with "ping 127.1.2.3". (This just seems to be one of those bugs that every proxy goes through at some point, just like pretty much any attempt to write a web server that…
Fun fact, windows blocks remote desktoping to localhost (because doing so would lock the console session unless you break license and modify termserv). Fun fact 2, this only blocks 127.0.0.1. (side note: if you don't mind breaking license compliance on your personal pc, you can use this to remote desktop into other user accounts on the same pc for a nice separation of work spaces (or just move to linux))
Ask me about CALs, I can tell you all about them.