so would i set both the client and the server programs to look for tcp or udp streams on that ip?
More or less. The server is running on the machine. It is "listening" (that is waiting) for a connection on whichever port you specify. The client then connects to the server on 127.0.0.1 (the loopback address, or simply localhost) on the same port. The server accepts the connection and you start sending data. Did that answer your question? I don't know what this has to do with Apache tho'. Apache and networking stuff....
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