That error means Dreamweaver crashed, or you cancelled out of the interface while it was running and it has recovered your settings. The name localhost in that message is the site name you are using, not the url.
If you click OK to recover your settings and then run the wizard does it crash every time with that window? I may need to set up a screen sharing session in order to debug what is causing it. Please try again and note at what point it crashes and if it continues to happen I can set up a screen sharing session in order to debug this with you.