Had a strange problem where the proxy was forcing IE to an incorrect proxy server so to fix:
1.Clear the Internet Explorer cache completely: ActiveX Controls, Cookies, History, etc..
2.Close all instances of Internet Explorer.
3.Delete all WPAD script instances. Open a command window as administrator and type the following command:
del \wpad*.dat /s
4.Clear the DNS and Netbios name caches. Open a command window as administrator and type the following commands:
ipconfig /flushdns nbtstat –R