Have you installed an Oracle database or is there an Oracle database available somewhere on your network?
Here is a download for Oracle 11g XE - a database, albeit old in itself.
SQL Developer is a client GUI and installing SQL Developer does NOT install or create an Oracle database.
Also, your version of SQL Developer is very old. Once you find or install an Oracle database to connect to, you should install a much more recent version of SQL Developer, from here:
But fails when I try to use in a direct " stand-alone " mode on my PC when attempting to create a new database via the Connection/New connection.
You can't 'create' a database in a 'connection' dialog.
That dialog is to connect to an EXISTING database. And your used of 'localhost' says the DB is on your own machine - which it isn't.
If you need a database on your machine then download the Oracle database and install it.
If you need to connect to a DB on another machine then don't use 'localhost' - use the host name, sid and port of the database you want to connect to.