>Actually, it is. The WatchGuard Firewall box is set up to filter this.
>I'm using Proxy ByPass to get around the usual internal proxy Server.

If that's standard as per other similar product, you should have an option to turn that off.

>Is there an absolute NEED for that information, or is it nice to have for tracking users?

Well, yes, of course, whatever we do everyday is justified. :) FYI, it has absolutely nothing to do to track users nor to extract any local information, which I really don't see how someone could achieve that with that referee variable.