1. the problem you have is permissions to the file. to write to the file, you need to start notepad by right clicking on the notepad icon and choosing 'run as administrator'. you can then open the file and make the necessary changes.
2. i would recommend that you use the domain name that you intend to use for the final website you are developing and give it the IP address 127.0.0.1. however, it if is all web based, then you could just type in your browser '
http://localhost' and it will find the default website on your local machine.
good luck
