>>There is a setting where you set up the proxy server in IE that says 'Bypass Proxy Server For Local Addresses'. Is that checked?
>
>It isn't what does that do? How does it know that the address is local?
>
>I fixed the ip address problem. I was seperating the excluded addresses by a "," instead of a ";"

Local to IE means on the same subnet as the address. For example, if the IP address of your machine is 192.168.1.5 with a subnet mask of 255.255.255.0 then any address that starts with 192.168.1 is local.