While opening IE7 on the computer, it shows “Internet Explorer cannot display the webpage” even if there is a Internet connection. If someone try to access webpage by typing in URL like www.yahoo.com in the address bar it gives “The address is not valid” with “http:///” in the address bar. This is caused by proxy setting enabled to localhost (127.0.0.1). See figure below.

Solution: Disable the proxy setting or remove the localhost IP address.
Steps:
1. Click on Tools option and select Internet Options as shown below.

2. Click on Connection Tab and click on LAN settings as shown below.

3. Now uncheck Proxy server or remove the localhost IP 127.0.0.1 and the port number. Or simply uncheck the proxy server setting as shown below.