Moodle networking (MNet)

I have the same problem.

Here is a helpful link to solve one problem about cURL
http://curl.haxx.se/

I have found this to solve the problem. Your config.php should be like this:
<?php /// Moodle Configuration File

unset($CFG);

$CFG->dbtype = 'mysql';
$CFG->dbhost = 'localhost';
$CFG->dbname = 'yourdatabase name'; //No change
$CFG->dbuser = 'root';
$CFG->dbpass = '';
$CFG->dbpersist = false;
$CFG->prefix = 'mdl_';

$CFG->wwwroot = 'http://computername/your moodledirectory';
$CFG->dirroot = 'C:\xampp\htdocs\your moodledirectory';
$CFG->dataroot = 'C:\xampp/moodledata';
$CFG->admin = 'admin';

$CFG->directorypermissions = 00777; // try 02777 on a server in Safe Mode

require_once("$CFG->dirroot/lib/setup.php");
// MAKE SURE WHEN YOU EDIT THIS FILE THAT THERE ARE NO SPACES, BLANK LINES,
// RETURNS, OR ANYTHING ELSE AFTER THE TWO CHARACTERS ON THE NEXT LINE.
?>

Also
1) Locate the following files:
C:\Program Files\xampp\apache\bin\php.ini
C:\Program Files\xampp\php\php.ini
C:\Program Files\xampp\php\php4\php.ini

2) Uncomment ;extension=php_curl.dll

3)Add this code
extension=msql.dll
extension=msql.so
just before
;;;;;;;;;;;;;;;;;;;
; Module Settings ;
;;;;;;;;;;;;;;;;;;;
All network will be enabled and restart your apache server.

I am using XAMPP Web Server