If I want to test a set of multicast IP programs (sender/receiver) without having to set up the networking, can this be done on the same box? If so, what needs to be setup
Some amount of network setup is necessary. If you do not want to create a physical network you can add multiple IP addresses to a single network card. If your machine has more than one network card you can even create a network with just two cards and a hub. Also if your machine has a wireless interface and a wired interface then connecting your machine to your wireless hub via both the wireless and wired interfaces will also get you a network.
Hope one of these ideas helps. Pat O