Comment #40 on issue 19581 by [email protected]: Bookmark sync login is  
broken for authenticating proxies
http://code.google.com/p/chromium/issues/detail?id=19581

This should be only partially fixed, if you've authenticated in another  
window it'll work
fine, but is not completely resolved. I think:

1. Real time notifications don't work
2. Dialog won't come up if user hasn't entered credentials recently
3. Might not connect right in the background if credentials are not in cache


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