Check if localhost has any issues with Bakery

I've tried EVERY setting change I can think of but CANNOT GET BAKERY TO WORK - either 6.x-2.0-alpha1 or the 6.x-2-dev version. (I'm testing on Acquia Dev Desktop stack before I lock myself out of my production site. I have localhost:8082 & a subsite libdev2.localhost:8082.) I followed the directions exactly (from http://drupal.org/node/1113208), paying attention to adding the slash, as required, at the end of the site urls

- I cannot sign in to subsite libdev2. I CAN sign into the localhost:8082 site normally
- when I try to sign to subsite libdev2 I get redirected to a signin form page at http://localhost:8082/bakery/login
- when I try to login at this page - http://localhost:8082/bakery/login with an acct I know works on both localhost:8082 & libdev2.localhost:8082, I get redirected AGAIN to http://localhost:8082/bakery/login with the "Access Denied"
message
- if I login to localhost:8082 from http://localhost:8082/?q=user with the same user acct info, I have no problem getting into localhost:8082
- if I try to login to libdev2.localhost:8082 from http://libdev2.localhost:8082/?q=user with the same user acct, either already being logged into localhost:8082 or not, I cannot get in. I'm locked out of my site until I use drush to disable the bakery module. Then I can get in again.

I've tried adjusting the underlying setting.php files for the default site & the libdev2 site many times/many ways - changing the $base_url, the $cookie_domain every way I can think of, including commenting out these lines. This is what I get in the dblog for localhost:8082 after having tried to login from libdev2.localhost:8082

Type access denied
Date Sunday, November 6, 2011 - 09:33
User Anonymous
Location http://localhost:8082/bakery/login
Referrer http://localhost:8082/bakery/login
Message bakery/login
Severity warning
Hostname 127.0.0.1