If you are installing a TFS Proxy server on a machine that is configured toautomatically receive the proxy settings from your network (this is differentthan DHCP) you may have connectivity issues when running the TFS Proxy Serviceas a machine account, such as NETWORK Service. For servers it is generally recommended that they use pre-configured IPand network Proxy settings (if needed).
You can verify this setting on your machine by opening up Internet Explorer / Tools/ Internet Options / Connections / LAN Settings.
The problem is that these settings are cached at a user level the first timeInternet Explorer (or default browser) is run. If you are using a machine account such as NETWORK Service, it willnever run the browser, and get these proxy settings.
In this situation you will either need to: