Installing the loopback is really easy. Just go to the control panel and Open Add Hardware.
Wizard appears and you may click Next >.
On the selection on "What do you want the wizard to do?" Select Install the hardware that I manually select from a list (Advanced) then click Next >
On the list, scroll down to and select the Network Adapters then click Next >
Scroll down the Manufacturer list and select Microsoft then on the network adapter list, select Microsoft Loopback Adapter and click Next >
The wizard will now confirm to install the virtual hardware. Clicking Next > will start the installation process.
You can now click the Finish button.
While the control panel is open. its a good time to configure the new (virtual) network adapter. We can configure the new Network just like a physical network. Just go to Network and Sharing Center on control panel
On the Network and Sharing Center, click Manage network connections.
Find the Network connection with labels as Microsoft Loopback Adapter, right click, then choose properties.
On my virtual network, I will be using IPv4 only for now. Choose Internet Protocol Version 4 (TCP/IPv4), then click properties.
I’m using a static network, and I will use the 10.0.0.0/ 24 block. Using this series, I dont want to conflict the existing physical network :D.
On the General Tab, choose use the following IP address radio button. I will be using the 10.0.0.2 IP, my subnet mask is 255.255.255.0 and a dummy gateway of 10.0.0.1. Ill be using it self as the DNS server (127.0.0.1). Click Ok. Then close the wizard.