Binding SQL Server To Localhost?

Greetings all,

I am a network security professional rather than a MS SQL admin, so I
apologize in advance if this is a bit of a basic question for this
list. I also cross-posted this to microsoft.public.sqlserver.server,
so sorry if anyone's read it already.

I know an admin setting up a SQL server that will only be
accesible by a webserver running on the same host (not happy about
running private vs publicly avaialable services on the same host , but
it's what we've got). As such, I'd like to recommend to him that the
SQL server only listen on the localhost ip, 127.0.0.1, thereby making
it inaccesible to the outside world. I looked around the MS
knowledgebase but couldn't find a clear document stating how to do
this. Is it even possible? Is there a better option for this
configuration?

It's been suggested that firewalling is the only option, but I'd really
like to do *both* (firewall & bind to localhost). The firewall in this
case will have to be host-based instead (software) instead of hardware
for non-technical reasons, so additionally if anyone recommends a
software firewall they use for this purpose I'd appreciate it. My firs
impulse is to recommend Tiny, but I've never used a software firewall
for an MS SQL/Web server before.

Thanks,
Brian