This problem is related with administrator rights. To solve this problem, please download following application called “HostsMan”: http://www.abelhadigital.com/hostsman then open “HostsMan Editor” from “Tools” menu, then add new records and click “Save”. That’s it.
In case if you have Windows XP (also true for Windows 7) on the VM, open “hosts” file from: C:\WINXP\system32\drivers\etc and add following line: <ip-of-the-local-pc> devel.localhost of couse I assume that devel.localhost subdomain is set up. Now you can reach the website hosted on your local machine.