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Will there be any difference if I login to my Magento admin panel by localhost or 127.0.0.1?

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    Afaik was there a problem in the past with urls which do not contain a .. therefore maybe there is a problem with localhost. But beside this no, I don't think so – Fabian Blechschmidt Jan 11 '14 at 18:36
  • I working this stuff I think there is no problem. – Keyul Shah Jan 12 '14 at 3:25
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I recently found that using localhost just won't work. Why this restriction exists is beyond me. You can either use the IP or create a dummy domain entry in your hosts file to use something like

127.0.0.1     dummy.magento

Then when you type in http://dummy.magento/admin (if your store is installed at root) it will open the admin login page.

Remember to change these core_config_data values

web/unsecure/base_url 
web/secure/base_url

BTW, I think this has been an issue since at least 1.4

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