Do you have wireless or anyother form of network connection to that pc?
If you do then you need to dissable it before doing the ping, sorry I forgot to mention it.
The 127.0.0.1 address is your local host address (home address) so when you ping it it tests communication with its network adapter, so itself. This means that the chip itself is not completly broken.
If you had no loss with all other adapters dissabled then the only other thing I could suggest to try is to reinstall windows or get a addon ethernet card.