I am using a jQuery plugin to set cookies and when I use localhost for the domain it will not store the cookie.
Here is the plugin I am using with jQuery 1.2.6.
http://www.stilbuero.de/2006/09/17/cookie-plugin-for-jquery/
Below is the code that I am using. You can see it does not like localhost, and I am running it from a development web server on localhost. One detail is that I am running off port 4005 but that should not affect the domain, AFAIK.
$(function() {
console.log('Testing');
var one = $.cookie('Test.One');
var two = $.cookie('Test.Two');
var three = $.cookie('Test.Three');
console.log(['one', one]);
console.log(['two', two]);
console.log(['three', three]);
$('#div1').text(one);
$('#div2').text(two);
$('#div3').text(three);
$.cookie('Test.One', 'Test 1');
$.cookie('Test.Two', 'Test 2', { path: '/' });
$.cookie('Test.Three', 'Test 3', { path: '/', domain: 'localhost' });
});