Using stunnel with usenet application in Windows 7

I have usenet program(Newsleecher v4.0 beta 20) that I use in conjunction with SSL by using a program called stunnel (which establish and encrypted SSL tunnel). Basically Newsleecher does a loopback to 127.0.0.1 to port 119. Port 119 is redirected to the stunnel app which sets up an encrypted connection to my Usenet server(Newshosting).

When I was using Windows XP I had no problems. However in Windows 7 it does'nt let me establish a a localhost connection to my stunnel application.

stunnel picks up 10 connections but newsleecher times out. I also looked at the firewall rules and allowed stunnel access to all port private/public and all protocols. If use newsleecher with SSL it works fine.

Here are the configuration files...

Newsleecher settings:

Server Address: 127.0.0.1
Port: 119
Encrypted Server Connection (SSL) is checked


stunnel.conf settings:

; Use it for client mode
client = yes

; Service-level configuration

compression = zlib

[nntps]

accept = 127.0.0.1:119

connect = nhxl.newshosting.com:563