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morfius, my proxy settings also say 127.0.0.1:8080 because I use Proxomitron. But prodikal, you haven't installed any adblockers or other similar software? Just uncheck the proxy, you don't need to use one at all.
Edit/Add: "loop back address" is usually called 'localhost' in the Windows world.
try automatically detect settings, in control panel- internet options- connections- {lansettings}
preep
If all else fails, why not get opera, it's the fastest web browser i've ever used!
prodical have you fixed it yet?. This happend to me once do as preep says..thats what i did.
tools>internetoptions>connections>lansettings check there. Hope that helps.
i automatically detected settins still isnt working oh well i will fix it eventually
how about....move to linux, use mozilla/opera
If you really want to stay with IE and use proxies, try using Promomitron....