Alexander,
Can you post the content of your LiveSupport.exe.config file?
BTW, can you test the following code?
<configuration>
<appSettings>
<add key="UseProxy" value="Default"/>
</appSettings>
<system.net>
<defaultProxy>
<proxy
usesystemdefault = "true"
/>
</defaultProxy>
</system.net>
</configuration>
Keep me posted
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