When you change your proxy server settings, the change does not take effect in Visual Studio .NET or in Visual Studio 2005 (835456)

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Steps to reproduce the behavior

1. In Visual Studio .NET or in Visual Studio 2005, turn on automatic proxy server configuration:
   1. On the Tools menu, click Options. The Options dialog box appears.
   2. Click Projects, click Web Settings, and then click Connection Settings. The Internet Properties dialog box appears.
   3. Click the Connections tab.
   4. On the Connections tab, click LAN Settings. The Local Area Network (LAN) Settings dialog box appears.
   5. Click to select the Automatically Detect Settings check box, and then click to clear all other check boxes.
   6. Click OK three times to close all dialog boxes.
2. Try to add a Web reference:
   1. On the File menu, point to Open, and then click Project. The Open Project dialog box appears.
   2. Locate the folder that contains the Web application project. Click any one of the Web application projects, and then click Open.
   3. In Solution Explorer, right-click the Web application project, and then click Add Web reference. The Add Web Reference dialog box appears.
   4. In the URL box, type the URL of the Web Service Description Language (WSDL) file, and then click Go.
      
      You receive a proxy error. Also, under Web services found at this URL, you receive the following error message:
      The proxy settings on this computer are not configured correctly for web discovery. Click the Help button for more information.
3. In Visual Studio .NET or in Visual Studio 2005, turn on manual proxy server configuration:
   1. On the Tools menu, click Options. The Options dialog box appears.
   2. Click Projects, click Web Settings, and then click Connection Settings. The Internet Properties dialog box appears.
   3. Click the Connections tab.
   4. On the Connections tab, click LAN Settings. The Local Area Network (LAN) Settings dialog box appears.
   5. Click to select the Use a proxy server for your LAN (These settings will not apply to dial-up or VPN connections) check box, and then click to clear the Automatically detect settings check box.
   6. Click OK three times to close all dialog boxes.
4. Add a Web reference to the same Web application project:
   1. In Solution Explorer, right-click the Web application project, and then click Add Web reference. The Add Web Reference dialog box appears.
   2. In the URL box, type the URL of the WSDL file, and then click Go. The name of the Web reference appears in the Web reference name box.
   3. Click Add Reference.
   The Web reference is added to your Web application project.