IP Scope/Domain Rules for SocketPolicyServer connections?

Anyone out there know the rules for what domains/scopes are allowed/disallowed for the WebPlayer?

For example, is it allowed to have a SocketServer hosted on LocalHost(127.0.0.1) or within the same IP scope as the client machine, communicating with a Unity Webplayer app hosted from a remote server?

We have an understanding of the PolicyServer issues, and have an implemented SocketPolicyServer in our socket server..

But we can not get this connection to work from the webplayer when the socket server is any our local domain.

Thanks in advance,

Aiken Development/AikenLabs