Originally Posted by hazeynight

I know this is an old thread but I had this exact problem and came across this. Firefox worked but IE kept saying that it can't connect. Not a big deal except for sites that don't support firefox. Figured how to fix it so I decided I should leave the solution for those that may come across this with the same problem.
What I did was under "Internet options" "Connections"tab "LAN setting" I unclicked "Use Proxy server"
Don't know if it has always been selected or on one of the updates for IE 6 did it or what. I tried everything else. Uninstall IE, install IE 7, everything was a no go. but the proxy server thing fixed it