Very Computer

1. 127.0.0.0 or 127.0.0.1?

Ok... I don't really have any problems with my machine when it comes to
networking.  However, I've noticed some strange behavior.  First off, what
should the inet address for the local loopback device be?  Mine is currently
at 127.0.0.0.  I remember reading somewhere that this was a Bad Thing.
However, I can telnet to 127.0.0.0 just fine.  Here is my ifconfig:
cerebus:~/$ ifconfig
lo        Link encap:Local Loopback  
          inet addr:127.0.0.0  Bcast:127.255.255.255  Mask:255.0.0.0
          UP BROADCAST LOOPBACK RUNNING  MTU:3584  Metric:1
          RX packets:89 errors:0 dropped:0 overruns:0
          TX packets:89 errors:0 dropped:0 overruns:0

However, localhost in my /etc/hosts is defined as 127.0.0.1.  As follows:
cerebus:~/$ cat /etc/hosts
127.0.0.1       localhost            
127.0.0.1       cerebus.bellatlantic.net cerebus

So I can also telnet to 127.0.0.1 as well.  And when I telnet to 127.0.0.1,
the number of packets transmitted and recieved changes for my loopback.  So
it appears that the loopback device is at 127.0.0.0 AND 127.0.0.1.  Is this
correct?  If not, what am I doing incorrectly?

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