This took me a while to figure out and thank to some blog posts I got there.

The DevCon command-line utility comes in 32bit and 64bit and does the job nicely.

Copy the tool form the link above , extract it to a directory ont teh local machine.

Using the cmd windows , navigate to the folder above and execute the follwing command:

devcon.exe install %windir%\inf\netloop.inf *msloop 

press <ENTER>

The following should appear in the cmd window

Device node created. Install is complete when drivers are updated...
Updating drivers for *msloop from C:\Windows\inf\netloop.inf.
Drivers updated successfully.

You now have a Loopback Adpater installed and all that is lect to is create static IPs on both the host and client and you are good to go.

Good Luck