Server goes down on loopback setup

Hello All,

I have three servers of which I want to use one as dedicated director,
second as director / real server and third as real server.

Previously I setup the configuration as listed here


http://www.ultramonkey.org/3/topologies/ha-lb-eg.html

but later I was told to use the following configuration

 http://www.ultramonkey.org/3/topologies/sl-ha-lb-eg.html

On using this configuration each time I try to setup the loopback for the
VIP the server gets unavailable and I cannot connect to it, and have to call
my ISP to remove the lookback configuration to make it available again.

Can someone please guide me as to why this is happening and what do I need
to do to get this sorted?

Regards,

Imran.