IE > 5.0 ignores proxy servers on localhost @ Win2K

Hi people,

i remember running into this once, asked expoerts on EE© but had no answer so i just made a work around, here it happens again, and still no solution, neither after googling for a couple of days ;-(

I am running a Windows 2000 SP3 box, "everything uptodate", as small LAN server where i run my apache, mail backup servers and so on, but this is also my client machine that i use to surf the internet myself .

mentioned machine have 3 IP addresses
192.168.174.114 My IP address on Global ISP LAN
195.138.***.13* Real IP address, i get by VPN dial to 192.168.174.1

i used to dial the VPN adapter manually, and configured IE to use a proxy server runniing @127.0.0.1 and everything worked fine, now that i have enabled The Windows built-in Routing And Remote Access Server, That Will dial the on-demand dial interface OnWindowsStart, IE stopped using mentioned proxy server on localhost .

i tried setting the proxy settings in internet options tab, on LAN settings, tried throuhg policies, more global policies and so on, i tried installing 3rd party soft like YONC, i tried doing every possible thing, nothing is making IE read my proxy settings any more .

Once again but more accurate and with more details......
A W2K machine running a VPN connection to a LAN, with 2 IP addresses, can't access proxy server installed on localhost ip address .

is it a bug i discovered, or am i still a newbie maybe ? :eek:
your help is wanted, being waited, and in of course appriciated .

Maybe this will help ....

http://www.phpx.info/images/static/AO/ie2.gif
http://www.phpx.info/images/static/AO/ie1.gif

just in case .....