I get the following error in Eclipse:
[timestamp - ddms] Can't bind to local 8600 for debugger
In addition to adding "127.0.0.1 localhost" to your hosts file, make the following changes in Eclipse.
Under Window -> Preferences -> Android -> DDMS:
Thanks to Ben Clayton in the comments for leading me to a solution.
Some Google keywords: Ailment or solution for Nexus S Android debugging with the error message: Can't bind to local 8600 for debugger.