Localhost confused about IP address

So I have this problem. I am trying to set up a test server in my room. It is connected to the internet through an ethernet cable to a router to a cable modem.

I downloaded the LAMP stack with Ubuntu. Everything is great except that I can't get apache to respect and obey me. Apache accepts my DocumentRoot, acknowledges it, but then refuses to actually implement it. It still continues to server files from /var/www which is the default directory.

The serverName is localhost.
The directory directives are set right, and server permissions.
The error log shows no errors.

Ok so now localhost is always supposed to be 127.0.0.1. I set the listeners to that. 80, 443.
Whereas before localhost worked, now it doesn't. So I went and changed the IP to my own computers IP.
Lo and behold localhost now seems to work.

Localhost always should be 127.0.0.1. I was wondering if this kind of mix up is connected to my root problem. Anybody seen something like this?

 

The localhost is now on the right IP. Anybody know anything about apache refusing to map an accepted root directory, it would be appreciated.

 

Please post your apache config, also the output of iptables -nL

 

Ok the localhost just started working again. The problem is that the Ubuntu apache is different from the standard apache, but they don't make that clear in both ubuntu's and apache's site.