Dashcode development - Emulator safari not able to load the page

I am using iOS sim开发者_Go百科ulator 4.3 for Dashcode 3.0.2. When I run the application I the simulator safari throws an error and cannot load the page. On the other hand the page is easily loaded on desktop browser. The url of the application formed uses localhost with the port number. However, when I replace the localhost word in the url with the ip address of my system, it works perfectly on the simulator safari.

I am blocked please help.

The .local keyword was deleted from Bypass proxy settings, I added it back and it works great now.