Connect to localhost from another computer

I would imagine this is because your server is set to listen on the loopback interface only. You can confirm this by looking at the output of netstat -an. As an example of output

Proto Recv-Q Send-Q Local Address           Foreign Address         State      
tcp        0      0 127.0.0.1:53            0.0.0.0:*               LISTEN     

This means that this server (bind nameserver in this case) is only LISTENing for connections on port 53 on the address 127.0.0.1.

You can get around this by either configuring the server to listen on the 192.168.1.1 address or to do something like ssh tunneling to get around this. It's a bit of an old article (2007) but the contents is still relevent: http://magazine.redhat.com/2007/11/06/ssh-port-forwarding/ (mirror).

I personally use Putty to do port forwarding of this ilk on my windows hosts.