Hi Glenn,
The default binding for port 1060 is to 0.0.0.0 which is all NICs. I just tried a vanilla install of NKEE-5.1.1 and successfully talked to 1060 on both lo and eth0 interfaces with different IPs. I would take a look at your firewall rules perhaps as the first line of enquiry.
As for locking down the backend - you can add role based access control here...
http://localhost:1060/tools/ee/befsecurity/manage/
To make this effective you also need to add an SSL socket connector to jetty in the backend fulcrum config /modules/...fulcrum-backend.../etc/HTTPJettyConfig.xml
There's a commented out connect in the default config that you just need to uncomment and set up the keystore and cert alias...
<Arg>
<Newclass="org.mortbay.jetty.security.SslSocketConnector">
<Setname="Port">8443</Set>
<Setname="maxIdleTime">30000</Set>
<Setname="Acceptors">2</Set>
<Setname="statsOn">true</Set>
<Setname="lowResourcesConnections">100</Set>
<Setname="lowResourceMaxIdleTime">5000</Set>
<Setname="keystore">../keystore</Set>
<Setname="password">test123</Set>
<Setname="keyPassword">test123</Set>
<Setname="truststore">../keystore</Set>
<Setname="trustPassword">test123</Set>
</New>
</Arg>
</Call>
You'll need a certificate in a keystore. This guide explains all you need to know...
http://docs.codehaus.org/display/JETTY/How+to+configure+SSL
If this is still not sufficient then we can also set up a BASIC / DIGEST security handler which can make ROC requests to an authentication endpoint - which could then call LDAP or whatever. But that will need a little specific customisation to suit your clients infrastructure.
Let me know if you need more assistance.
Peter