How to install loopback Adapter in Windows 2003/xp

To install a loopback adapter on Windows 2003 or Windows XP:
1. Open the Windows Control Panel.
2. Double-click Add Hardware to start the Add Hardware wizard.
3. In the Welcome window, click Next.
4. In the Is the hardware connected? window, select Yes, I have already connected the hardware, and click Next.
5. In the The following hardware is already installed on your computer window, in the list of installed hardware, select Add a new hardware device, and click Next.
6. In the The wizard can help you install other hardware window, select Install the hardware that I manually select from a list, and click Next.
7. From the list of hardware types, select the type of hardware you are installing window, select Network adapters, and click Next.
8. In the Select Network Adapter window, make the following selections:
o Manufacturer: Select Microsoft.
o Network Adapter: Select Microsoft Loopback Adapter.
9. Click Next.
10. In the The wizard is ready to install your hardware window, click Next.
11. In the Completing the Add Hardware Wizard window, click Finish.
1. If you are using Windows 2003, restart your computer.
2. Right-click My Network Places on the desktop and choose Properties. This displays the Network Connections Control Panel.
3. Right-click the connection that was just created. This is usually named "Local Area Connection 2". Choose Properties.
4. On the General tab, select Internet Protocol (TCP/IP), and click Properties.
5. In the Properties dialog box, click Use the following IP address and do the following:
a. IP Address: Enter a non-routable IP for the loopback adapter. Oracle recommends the following non-routable addresses:
 192.168.x.x (x is any value between 0 and 255)
 10.10.10.10
b. Subnet mask: Enter 255.255.255.0.
c. Record the values you entered, which you will need later in this procedure.
d. Leave all other fields empty.
e. Click OK.
6. Click OK.
7. Close Network Connections.
8. Restart the computer.
9. Add a line to the SYSTEM_DRIVE:\WINDOWS\system32\drivers\etc\hosts file with the following format, after the localhost line:
10. IP_address hostname.domainname hostname
11.
where:
o IP_address is the non-routable IP address you entered in step 16.
o hostname is the name of the computer.
o domainname is the name of the domain.
For example:
10.10.10.10 mycomputer.mydomain.com mycomputer

12. Check the network configuration:
. Open System in the Control Panel, and select the Computer Name tab. In Full computer name, make sure you see the host name and the domain name, for example, sales.us.mycompany.com.
a. Click Change. In Computer name, you should see the hostname, and in Full computer name, you should see the host name and domain name. Using the previous example, the host name would be sales and the domain would be us.mycompany.com.
b. Click More. In Primary DNS suffix of this computer, you should see the domain name, for example, us.mycompany.com

Refer http://download-uk.oracle.com/docs/cd/B19306_01/install.102/b14316/reqs.htm#BABGHEFB