I am also having trouble with IE ignoring the PAC file. I have tried linking it to a local file as well as off a webpage. I am running WinXP home edition and using IE 7 (and IE6.29 on another WinXP Home edition computer). I also tried the Proxomitron program and they ignored that as well. At work I use IE7 with WinXP Pro and it works just fine. I also had it working on Win2K before I upgraded to WinXP home. The reading I have done on the internet suggests that there is an issue with the Home version of XP. I have found several places say that there is no solution for a XP Home OS. But I am not entirely convinced because I installed FireFox and it works beautifully. But I am a IE fan and wish to return to it. Any help would be appreciated.