Originally posted by SoyCD
Here something I found on the German board
1.1. Failed to establish a connection to '127.0.0.1'

Attention: This error message usually comes right after being asked to create a new database!
Fixing it:
Close the Elephant before running through the following steps!
Step 1: Check the postgreSQL service
In the start menu select "run" and confirm the dialogue after having entered "cmd".
The in the command line now run the "net start". This command lists all running services
a) If the entry PostgreSQL Database Server 8.3 is in the list, please continue with Step 2.
b) If the entry doesnt appear - continue with Step 3.
Step 2: Close the SQL Database service
Since the service is running but not working correctly it needs to be re-started:
In der command line execute the following command net stop pgsql-8.3.

Step 3: Restart the Database
Once the service is no longer active you can restart it in the following fashion:
In the command line execute the following command net start pgsql-8.3.

Attention:
If the service cannot be started it means the database was not correctly installed. Go to the Elephant folder and run the file "postgresql-8.3.msi" (note down the username and password that you should use)!
Step 4: Control
After running the command net start the service PostgreSQL Database Server 8.3 should appear in the list.

Remark: Displayed data has been shortened
Step 5: REstart the Elephant
When you restart the Elephant you will be asked to create a new database

In this dialog enter your username and password and select your existing database with the magnifying glass icon.
Thx ALOT dude, working now for me!