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I don't really see how it would be 127.0.0.1, though. Even on my server when I browse, my server's IP shows up instead of a loopback IP. All I can say is that it is very strange. Good luck finding the cause, but I don't think A4Proxy is behind it... I think that their Fake IP address is acturally just selecting a random proxy for each connection, but I've never used it so I don't know 100% for sure...
Its supposed to modify the Http request to make it look like you are coming from another IP address... but anyway, I tryed a couple of tools that claim to hide the IP address or spoof it and none of them tricked my BB. This is a weird situation. I dont know what they could of done.