Hi All, I posted yesterday my problem with http://localhost:8080 browsing/address resolution. Simply if I used address name it didn't work (HTTP 500 error) if I used dot notation address it worked. Problem was improper proxy server settings. After I updated IE (VER. 6) I still used port 80 for the HTTP and FTP proxy connection but ver 6 works with port 2008. Thanks to everybody for encouragement and good suggestions to solve this.
Tomislav