connecting to localhost 1523 - fault

[Caled]

At first I thought this to be a fault with Karmic (I recently installed it) but now I am not so sure.
Basically, I run a proxy program called Mudbot. I connect to this (localhost) and it connects to my mud. I upgraded to Mudlet 1 at the same time as I upgraded to Ubunto 9.10, so I don't really know which of the two upgrades caused it. However, the following extracts show me successfully connecting to Mudbot from outside of Mudlet (i.e. a simple telnet command from the console). This suggests to me that for some reason Mudlet cannot detect localhost.

Halp!

This is what shows in the console when I start mudbot up.

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brett@brett-laptop:~/Desktop/amts$ ./bot
Listening on port 1523.
Loading file './i_mapper.so'.
IMap loaded. (123908 microseconds)
Entering main loop. All ready.

This is what shows in another console when I "telnet localhost 1523"

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brett@brett-laptop:~$ telnet localhost 1523           
Trying ::1...                                         
Trying 127.0.0.1...                                   
Connected to localhost.                               
Escape character is '^]'.                             
MudBot v2.41 - Copyright (C) 2004, 2005  Andrei Vasiliu.

MudBot comes with ABSOLUTELY NO WARRANTY. This is free
software, and you are welcome to redistribute it under
certain conditions; See the GNU General Public License
for more details.

Module: IMapper v5.51.
Connecting to aetolia.com:23... Done.
[Send `help to get some help.]
Rapture Runtime Environment v2.1.3 -- (c) 2007 -- Iron Realms Entertainment
Multi-User License: 100-0001-000

       * * * * * * * * * * * * * * * * * * * * * * * * * * *

                         - A E T O L I A -

                  T h e   M i d n i g h t   A g e

       * * * * * * * * * * * * * * * * * * * * * * * * * * *

This is the first console window after connecting to localhost (which in turn connects to Aetolia.com 23)

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brett@brett-laptop:~/Desktop/amts$ ./bot
Listening on port 1523.
Loading file './i_mapper.so'.
IMap loaded. (123908 microseconds)
Entering main loop. All ready.
Sock.sinaddr:  127.0.0.1 (localhost)
Connecting to: aetolia.com 23.
Connected.
mxp: Unsupported by your client.
atcp: Sent IAC DO ATCP.
mccp: Sent IAC DO COMPRESS2.
mccp: Starting decompression.

This is what shows in the Mudlet main window when I attempt to connect to localhost 1523. There is no response from Mudbot when this happens.

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System Message: looking up the IP address of server:localhost:1523 ...
System Message: The IP address of localhost has been found. It is: 0:0:0:0:0:0:0:1
System Message: trying to connect to 0:0:0:0:0:0:0:1:1523 ...

[Heiko]

use 127.0.0.1 instead of localhost

[Caled]

Thanks mate!