doggeral,

Thank you for the information. I will have to research the loopback problem.

But if IE connects directly to Proxo, then why does Sygate ask if I want to grant permission to IE to access the internet? If I set Sygate to block ALL, none of my apps will connect.
This seems contrary to what you have said. However, this is off topic and I no longer use Proxo since it is not supported anymore by the developers.

Nice to have shared a user problem with you.

Doggeral,
I came across this site. DocB may be able to help you.
http://www.moonlake.net/security/docbza3.htm

Techie