I had the same problem with rh7.2. Make sure /ect/hosts and /etc/sysconfig/network are right, then do
>lfconfig lo 127.0.0.1
Hopefully that will do it. It's odd, the loopback device should be setup properly on installation. We probably messed sth up after install. Anyway, hope this helps.
cheers,
wil snyder
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