Only thing I can come up with is that something is redirecting the webpages to localhost or that one of the standard email ports are used to get webpages.
Last one is highly unlikely, not imposible, but it would require a very out of the ordinary setup.
For the first one, it could happen if one is running his/her own server. But I never saw Quietheart mentioning anything about that.... So also not likely. I asume if he did, he would already mentioned it.
I think it is something simple that is overlooked. (setting in IE or other security util?) or that he is mistaken the message about the 127 IP. (that it refers to something else and not webpages)
Other than this, I can't come up with something that would make sense. Too bad I can't take a look at his system.