I have created a Virtual host and added this into the HOSTS file as well. Reboot the PC and when I enter the host name in the address bar, the page cannot be displayed: Reason: UNKNOWN , Notification: DNS_FAIL.

When i ping the site i do get a reply, howeveer when I do a nslookup, the proxy server cannot find. This is a local site (localhost). Why does the proxy block this and how can I fix this?