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The IP address 127.0.0.1 is the internal loopback address of any one device. So, when the Kindle tries to access 127.0.0.1, it tries to access a server running on itself. You need to figure out what IP address your computer has (probably something like 192.168.x.x) and use that on the Kindle.
The 127.0.0.1, of course, works on your computer, as it can see the server running on it's own address.
Edit: Oops, took too long to type.
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