In RC2  localhost does not resolve to 127.0.0.1.
Specifically I put the following entry in hosts.allow
ALL: localhost

then there is no local access to services.

If I put the following entry in hosts.allow
ALL: 127.0.0.1

then I have access.

This indicats a name resolution problem.  The nsswitch file looks ok.

I checked further and adding access from other computers works if
you use their numeric address but not if you use thier hostname, even
if the information is included in the hosts file.