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The 127.0.0.1 address is what is known as the "localhost" address and will only work for applications running on the same machine as the server. On the kindle 3 you need to use the network address of the machine running the server rather then the 127.0.0.1 one.
If you do not know how to find out your machines network address then mention what OS you are running and someone will be able to help.
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