"/127.0.0.1:49653 lost connection" Cant connect!

Please help!
I've searched through so many forums and I have not been able to find the answer to why I can't connect. These are my server properties:

This is my batch file properties:

I can connect using the minecraft vinilla server, but not the bukkit. I have no other plugins installed, I can't connect using my external or internal ip or local host. Can someone please tell me what's wrong?

Everything is port forwarded correctly, as I can easily connect using the minecraft regular server host. What am I doing wrong?

 

Sounds like you have a lag problem, you don't need to port forward if you are hosting on a local machine and you can use 0 or localhost instead of your External IP address. Your router may not support what i call Loopback, or where you can connect internally with your external IP.

 

Wait, what? Why would I not need to port forward?

 

Port Forwarding is for people outside your router. 127.0.0.1 is a Local IP address, therefore you need not Port Forward to play locally, you do if you want your friend across the street to play too, but anyone inside your router doesn't need the server port-forwarded to play. (Sorry I wasn't Clear in my response)

 

Well I'm starting a server for multiple people, so I figured I do need to portforward.
The issue is that I can't connect to the bukkit server myself, there pretty much is no server at them moment haha.