visual studio development server automatically redirects default port with machine ip

visual studio development server automatically redirects default port with
machine ip

This is a weird issue I have been facing for a couple of days now. When I
run my ASP.Net web app from visual studio 2010, it starts the dev server
and opens IE. I can see the correct URL getting formed (ex:
http://localhost:53990/index.aspx). But then it redirects to
"http://my-machine-ip". I can see the dev server process (webdev) in task
manager. If I browse the above URL in a separate IE instance, manually, I
still get the same behavior.
This problem comes in chrome as well, but works properly in Firefox.
Since it was working in FF, I ignored it, but now an increasing number of
my colleagues have started facing the exact same issue. Tried searching
for a solution on Google and stackoverflow, but couldn't find any.
Has anyone else faced a similar issue? Would be great if I can get any
help/pointers with this issue. Please let me know if you need more
details.
PS: I am coding in c#, not sure if it matters but thought I should specify
it.