When Networking do you need to use your IP address?

Just as the title says. I know the answer may seem obvious or that, yes, everyone has to use their IP address, but I followed a certain tutorial. Everything has worked well so far, but when I put in my IP address for the ipAddress variable, and try to connect or start a server on the game, it freezes or says that the server cannot connect.

Here is the code:

 var ipAddress : String = "127.0.0.1";
 var port : int = 25167;
 var maxConnections : int = 10;
 
 var playerGO : GameObject;
 
 var log : String = "";
 var myMessage : String = "";
 var chatting : boolean = false;
 
 function OnGUI () {
     if (Network.peerType == NetworkPeerType.Disconnected) {
         GUILayout.BeginHorizontal ();
         ipAddress = GUILayout.TextField (ipAddress);
         GUILayout.Label ("IP ADDRESS");
         GUILayout.EndHorizontal ();
         
         GUILayout.BeginHorizontal ();
         var tempPort : String ;
         tempPort = GUILayout.TextField (port.ToString());
         port = parseInt(tempPort);
         GUILayout.Label ("PORT");
         GUILayout.EndHorizontal ();
     
         if (GUILayout.Button ("CONNECT")) {
             for (var l : GameObject in FindObjectsOfType (GameObject)) {
                 l.BroadcastMessage ("OnLoadNetworkLevel", SendMessageOptions.DontRequireReceiver);
             }
             print ("Connecting . . .");
             Network.Connect (ipAddress, port);
         }
         
             if (GUILayout.Button ("START SERVER")) {
                 for (var l : GameObject in FindObjectsOfType (GameObject)) {
                 l.BroadcastMessage ("OnLoadNetworkLevel", SendMessageOptions.DontRequireReceiver);
             }
             print ("Starting Server . . .");
             Network.InitializeServer (maxConnections, port);
         }
     }
     else {
         if (GUILayout.Button ("DISCONNECT")) {
             Network.Disconnect (200);
         }
         if (Input.GetKeyDown (KeyCode.T)) {
             chatting = true;
         }
         if (Input.GetKeyDown (KeyCode.Escape)) {
             chatting = false;
         }
         if (chatting) {
             GUILayout.Label (log);
             myMessage = GUILayout.TextField (myMessage);
             if (GUILayout.Button ("SEND MESSAGE")) {
                 networkView.RPC ("Chat", RPCMode.All, myMessage);
             }
         }
     }
 }
 
 function OnConnectedToServer () {
     print ("Connected!");
     OnLoadNetworkLevel ();
 }
 
 function OnPlayerDisconnected (player : NetworkPlayer) {
     Network.RemoveRPCs (player);
     Network.DestroyPlayerObjects (player);
 }
 
 function OnDisconnectedFromServer () {
     Application.LoadLevel (Application.loadedLevel);
 }
 
 function OnLoadNetworkLevel () {
     yield 25;
     GetComponent (Camera).rect = Rect (0.7, 0.7, 0.25, 0.25);
     GetComponent (GUILayer).enabled = false;
     if (Network.peerType != NetworkPeerType.Disconnected) {
         Network.Instantiate (playerGO, transform.position, transform.rotation, 0);
     }
 }
 
 @RPC
 function Chat (input : String) {
     log += "\n";
     log += input;
 }

So do I need to use MY IP address? Or is there a more simple answer? Since currently my IP address isn't working for the networking.