Couple of things. The loopback address for connections on the same machine is 127.0.0.1 and it's important that you use that address for the initial login to ioFTPD because that's the only address that can connect. This should work, so check that ioGUI runs.
192.168.1.1 is usually the linksys router. I don't think I've ever seen connections coming from the router itself though. The linksys is a NAT firewall and it assigns internal IP addresses on demand and are usually 192.168.1.100+. If you are forwarding ports so people can talk to your FTP you've probably manually assigned an IP address to your machine. Double check it isn't 192.168.1.1
Depending on the model you can sorta talk to yourself using your external IP address since it will just forward the packet back to you, but mine drops packets left and right and results in corrupted files transfered this way all the time. When talking between machines internal to my router I use the local 192.168.1.* IP address (well, I add the host to the local hostfile and use the name) I assigned and check the option for the site in flash,etc to use the IP address of the site instead of the IP address of the PASV reply. This is important since a properly configured ioFTPD behind a NAT firewall should be reporting your EXTERNAL IP...
Here's two tidbits...
1) Use "ipconfig /all" to see information on configured network interfaces and find out what internal IP address you're using.
2) Use "tracert host/ip" to see the path to another computer. On a local network it should just go straight there as the router will play the role of a switch. If the packet actually goes to the router via 192.168.1.1 something isn't right. Double check that you have subnet masks (i.e. 255.255.255.0) and identical leading IP address (192.168.1.*).