Hi.
I am really new to WebSphere and
Java, and much better with networking

So don't think I can really help you with the log but can sure try with the networking:
If you are using a router at home (I assume it is not dial up?) just configure it to use NAT (Network Address Translation) and configure your machine for a permanent IP (i.e 192.168.1.10)
Which
Open command prompt and run "hostname" (or right click "my computer" and select properties, then "computer name") and check for the name (even better if you have "Full Computer Name" configured.
Then edit your host file (no need to remove loopback line):
my.ip.add.ress COMPUTER_NAME
Good luck!