Can one capture localhost packets?

Hi gurus,
Appologies if this is not the right group or if the question had been
thrown before. A quick search failed to answer my question in the
subject line.
I was hoping to capture local packets on my Windows machine with
Ethereal but did not succeed.
Basically, I was hoping to capture local packets on my Windows machine
with Ethereal. Apache HTTP server is running on my PC. Starting the
capture then requesting http://127.0.0.1/ from the browser did not
result any captured packets.
FYI, I'm using winpcap.
Any recommendations?
TIA