CXF Server No Longer Responds to Localhost

[Vitaly Peressada]

Migrated from
CXF 2.2.2 and Jetty 6.1.18
To
CXF 2.4.0 and Jetty 7 7.3.1.v20110307

We start CXF using JAXRSServerFactoryBean something like:

 this.endpointUrl = "http://";
                + InetAddress.getLocalHost().getCanonicalHostName()
                + ":"
                + String.valueOf(this.getListenPort()) + "/";
 jaxrsBean.setAddress(this.endpointUrl);
server = jaxrsBean.create();
server.start();

But after upgrade CXF responds only on fully qualified host name eg. 
http://foo.bar.com and http://localhost... is not working

Not sure if this CXF or jetty issue. Any ideas?