Microsoft Loopback Network Adapter is a virtual network adapter that helps to use virtually when you don’t have any physical network adapter in your computer.
You can install this Loopback Network Adapter in both Windows XP and Server 2003 Operating system.
And in this tutorial, I am going to show you on how to install Microsoft Loopback Network Adapter in Windows Server 2003 operating system.
Follow this step by step guide to install Microsoft Loopback Network Adapter :
1. Login to your Windows Server 2003 computer with admin user account.
2. Open control panel from start menu.
3. In control panel, Double Mouse click on Add Hardware. Shown in below picture

4. A new wizard will open. Click on NEXT. Shown in below picture

5. Check on “Yes, I have already connected the hardware” and click NEXT. Shown in below picture

6. Computer will show some hardware device that connected with your physical computer. Scroll down with mouse and choose “Add a new hardware device”. Then click NEXT. Shown in below picture

7. Select “Install the hardware that I manually select from a list (Advanced)” and click NEXT. Shown in below picture

8. Again select Network Adapters and click on NEXT. Shown in below picture

9. From the next wizard, select Microsoft — Microsoft Loopback Adapter and click on Next. Shown in below picture

10. Click NEXT.
11. Then computer will start installing Microsoft Loopback Network Adapter. When computer will finish installing Network Adapter, you will get successful message. Click on Finish. Shown in below picture

12. Done. You have successfully finished installing Microsoft Loopback Network Adapter in your computer.
Note : Microsoft Loopback Network Adapter needs static IP Address. So you have to assign a STATIC IP Address from Network Connection TCP/IP Properties.








Asking questions are actually nice thing if you are not understanding anything entirely, but this post presents good understanding yet.