Proxies are programs running on a computer that acts a server on
the network you are connected to (whether by modem or other
means). These programs receive HTTP and FTP requests, retrieve
the relevant files from the internet, and pass them on to the
client computer that made the requests. When you have configured
a proxy, HTTP and/or FTP requests are re-routed through the
computer that is acting as a proxy server. However, you can also
select specific hosts which should be contacted directly, rather
than through the proxy server. If you are on a local network,
for example, access to local hosts probably doesn't need to go
through a proxy server. You should only need to configure a
proxy server if your network administrator requires it (if you
are a dial-up user, that would be your internet service provider
or ISP). Otherwise, especially if you are feeling a bit confused
about this proxy business, but everything seems to be fine with
your internet connection, you don't need to change anything.
Please note that