I just spent some time debugging a problem and figured I would share this 
insight, just in case anyone else runs into the problem.
I had a group of newly-imaged machines that would not let students onto the 
Internet. Network, yes, Web, no. I could get on with no problem. After a 
subsequent log out and log in for the student, they could get on as well. I 
figured it was a proxy issue. It was.
It eventually turned out that the program I had used to upgrade IE8 was built 
from the IE Admin Kit, which allows you to pre-set a bunch of settings, 
including the proxy. On a first-time login to a machine, the IEAK proxy 
settings (and everything else the IEAK sets, from what Microsoft indicated) are 
applied last and overwrite anything you have set via GPO.
The way to fix this is to remove or rename the CUSTOM folder from c:\Program 
Files\Internet Explorer.
-Eric
--
Eric Barringer
Technology Coordinator
Blue Ridge CUSD #18

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