newbie question on DNS

[kamesh jayachandran <kameshj@xxxxxxxxxxxxxxx>]

I had a shell account on zimcity.net.I used to login there and do my routine 
stuff there.
One day I am not able to login to their server because when I used to do so I 
am connected to my loopback server.
That is the IP address of zimcity.net is set as 127.0.0.1(But this action has 
not taken place in our /etc/hosts file).I hope the same on the vsnl DNS also.
The same IP is returned when I try to connect from other servers to 
zimcity.net which probably look in to its own DNS.
The IP address 127.0.0.1 is reserved for some special purposes,how can domain 
name associate a reserved IP address to itself globally.
Thanks in advance
kamesh jayachandran

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kamesh jayachandran
Software Engineer
MicroLand limited
Bangalore
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