Virtual Server and Loopback Adapters = WTF?

I have had lots of trouble getting my host VM, Hyper-V and Virtual server hosts to see the guests. Thining it was my tardoness I had tried other apps without success. Finally I tried the new Virtual Server 2005 R2 SP1....got the same damn issue!
Did some hunting arund and found this that started me on the right track...

http://vscommunity.com/blogs/virtualzone/archive/2007/01/09/using-the-microsoft-loopback-adapter-with-virtual-server-2005-r2.aspx

What I did to get it working:

Install loopback adapter on host and left to DHCP.

Created new virtual network and pointed it at my Physical adapter.

Verfiy firewall on virtual host off -> all OK ???

I give up - loopback adapater did not come into it at all!!!

There's bound to be a reason....