Install Loopback Adapter in Windows 7

The Microsoft Loopback adapter is a testing tool for a virtual network environment where network access is not available. You can bind network clients, protocols, and other network configuration items to the Loopback adapter, and you can install the network adapter driver or network adapter later while retaining the network configuration information.

To install a Microsoft Loopback adapter in WIndows 7:

• Start "cmd" in "Administrator mode”
• From the command prompt, run “hdwwiz.exe“. This should launch the “Add Hardware Wizard“. Click Next.
• Select “Install the hardware that I manually select from a list (Advanced)” and click Next.
• Now from the list select Network Adapters and click Next.
• Under Manufacturers, select Microsoft and select “Microsoft Loopback Adapter” under Network Adapter and click Next. This should start the installation. 
• Click Finish when the installation completes.

To confirm the loopback adapter installed, right-click Computer, select properties. Click Device Manager and expand Network Adapters and you can see the Loopback adapter installed there.