are you guys setting any rules for the localhost communication. since it is actually the connection between the browser and Webshield that you want to control and it is between 127.0.0.1:xxxx and 127.0.0.1:12080, so really are your firewalls able to block the localhost traffic, or control it - are you sure you don't have there some big rule allowing all trafic inside the computer (localhost only) etc.
Thanks for the reply.
1.This didn't happen using Avast 6, it's a specific 'issue' with Avast 7.
2. Some Applications specifically require access to loopback for internal communication, for example firefox.
3. Creating a specific rule to block all localhost communication, for IE, had no effect.
By the way, this 'issue' affects 32 bit and 64 bit Windows 7.