You're both correct. In some early versions of IE (or 3rd party dialers), if you tried to access say http://localhost, it would attempt to dial if a network connection wasn't already available. I think it was in IE 5 or so where this was corrected. Note that this only affected the nntp, pop(2|3), smtp, http, https, gopher 'protocols'.
No one has seen what you have seen, and until that happens, we're all going to think that you're nuts. - Jack O'Neil, Stargate SG-1
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