This made me believe that it had to be a software issue, and not a network one as I was going through localhost. So I deleted everything. I made the server vanilla, the client vanilla. I even redownloaded the minecraft_server.jar, and the minecraft.exe. I even tried the minecraft_server.exe, no avail. For whatever reason, localhost refuses to work as a way to connect, and I feel like if that was solved, all of this would be.
EDIT: I'll also mention that I had 32 bit Java 7 installed on my 64 bit computer, that didn't work. So I've unistalled it, and went through the trouble of even reinstalling with the 64 bit to fix the issue. This did not work. I'll also repeat, if it wasn't apparent, I can easily connect to other servers. Modded clients, or vanilla ones.
"#Minecraft server properties #Fri Dec 28 00:50:38 EST 2012 generator-settings= allow-nether=true level-name=world enable-query=false allow-flight=false server-port=25565 level-type=DEFAULT enable-rcon=false level-seed= server-ip= max-build-height=256 spawn-npcs=true white-list=false spawn-animals=true snooper-enabled=true hardcore=false texture-pack= online-mode=true pvp=true difficulty=1 gamemode=0 max-players=20 spawn-monsters=true generate-structures=true view-distance=10 motd=A Minecraft Server
This is my server properties.
C:\Users\Leggerrr\Documents\Minecraft\servers\Vanilla>java -Xms512M -Xmx1G -jar minecraft_server.jar 210 recipes 27 achievements 2012-12-28 00:50:37 [INFO] Starting minecraft server version 1.4.6 2012-12-28 00:50:37 [INFO] Loading properties 2012-12-28 00:50:37 [INFO] Default game type: SURVIVAL 2012-12-28 00:50:37 [INFO] Generating keypair 2012-12-28 00:50:38 [INFO] Starting Minecraft server on *:25565 2012-12-28 00:50:38 [INFO] Preparing level "world" 2012-12-28 00:50:38 [INFO] Preparing start region for level 0 2012-12-28 00:50:39 [INFO] Preparing spawn area: 98% 2012-12-28 00:50:39 [INFO] Done (1.125s)! For help, type "help" or "?"
This what I'm getting in the console now, let me know what else I can do, because this is driving me crazy, lol. Thanks for those who can help.