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Can I use localhost for the database?

As part of increasing the security of the Atlassian products it has been suggested that if the server communicates directly with the database that I should use a localhost database rather than a network visible port.  I have had a bit of a go, but can't seem to get it to work.  I suspect that the database access is from the client rather than the server.  Is my suspicion correct or is there something else I'm missing?

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There's no harm in setting up a database on the Crowd server for local use - in fact, it's usually easier because most databases, when first installed, only listen locally by default, you have to add settings to them to get them to listen to other places.

The main question here is what you are getting - what are the symptoms of "can't seem to get it to work"?

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