Hi Marc,
Yeah just because of this last issue complete project has been delayed.
I have been pushing proxy settings through group policy and exclusion for intranet sites.
If I bypass proxy then it works fine.
Chrome pulls all the settings from IE then why chrome works not IE 
I played a lot with IE security, NTLM auth nothing worked so far.
When I tail i get TCP_DENIED/407 (5-6 packets of deny then TCP_HIT/200)
Whereas in Chrome no TCP-Denied.
Btw: I'm thinking to try IE-9. I will keep posted
Thanks,