Tor Configuration Problems

Ive installed Tor and Privoxy as suggested. http://tor.eff.org/docs/tor-doc-unix.html.en, but i still get the error

This is Privoxy 3.0.3 on localhost.localdomain (127.0.0.1), port 8118, enabled
Connect failed

Your request for http://www.google.com/ could not be fulfilled, because the connection to www.google.com (127.0.0.1) could not be established.

This is often a temporary failure, so you might just try again.

can anyone help me clear this up?

Cheers

dave

 

Why does it think that Google is 127.0.0.1?

 

127.0.0.1 is supposed to be my computers internel ip, and all internet connection goes through that.