I followed the minecraft wiki on how to set up a new server (extract zip, add name to admin file and run!) however, when i connect through the local client to the server using 127.0.0.1 as my ip (localhost) the local client freezes, and the server reports "Kicking /127.0.0.1: You need to log in!".
But since I was using the local client, I had logged in and I have in fact bought the game. Whats going on? How do I fix this? I am also running the latest version of Java.
Added the server console log
14:15:10 Setting up 14:15:10 Loading level 14:15:10 Now accepting input on 25565 14:15:10 Level saved! Load: 0/16 14:15:19 /127.0.0.1 connected 14:15:24 Kicking /127.0.0.1: You need to log in! 14:15:24 /127.0.0.1 disconnected