diff --git a/ChangeLog b/ChangeLog
index afd4df43c..6ee6cf0c1 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -10,6 +10,8 @@ Deluge 1.0.1 (In Development)
   * Changed max half-open connections default limit to 8 on XP/2000 and 4 on Vista
   * Prevent being able to set file priorities for compactly allocated torrents as
     it is not intended to work.
+  * Fix freezing on start-up issues on systems that do not have a properly
+    configured localhost entry.
 
  GtkUI:
   * Improve performance of files tab by only updating when values change
diff --git a/deluge/core/core.py b/deluge/core/core.py
index 59945724e..395a47bfc 100644
--- a/deluge/core/core.py
+++ b/deluge/core/core.py
@@ -132,7 +132,7 @@ class Core(
         if self.config["allow_remote"]:
             hostname = ""
         else:
-            hostname = "localhost"
+            hostname = "127.0.0.1"
             
         # Setup the xmlrpc server
         try:
diff --git a/deluge/ui/gtkui/connectionmanager.py b/deluge/ui/gtkui/connectionmanager.py
index 95b446486..0ad480375 100644
--- a/deluge/ui/gtkui/connectionmanager.py
+++ b/deluge/ui/gtkui/connectionmanager.py
@@ -333,7 +333,7 @@ class ConnectionManager(component.Component):
         online = True
         host = None
         try:
-            host = xmlrpclib.ServerProxy(uri)
+            host = xmlrpclib.ServerProxy(uri.replace("localhost", "127.0.0.1"))
             host.ping()
         except socket.error:
             online = False