NO need to answer this question. If anyone is interested, this is the reason why this is happening: You cannot connect to the Internet from a Windows Vista-based computer that uses a local .pac file __________________________________________________ Just out-front I'm not having problems with IE10/Firefox12/ChromeWhateverVersion. This is strictly Windows 7 problem (under Windows XP this same PAC file works like a charm). In ControlPanel\Internet Options\... I have configured PAC file (file://C:/ProgramData/Internet Settings/proxy.pac) This is my PAC file for Laptops in my firm (note the DIRECT after PROXY specification): function FindProxyForURL(url, host) { if (isPlainHostName(host) || dnsDomainIs(host, ".my-domain.com")) { return "DIRECT"; } else { return "PROXY proxy.my-domain.com:8080; DIRECT"; } } Case 1. - Before Restarting PC (just after the PAC file is setup) - Network and Sharing Center displays Internet connectivity, Windows Update works fine - IE10/Firefox/Chrome connect to the Internet just fine Case 2. - After Restarting PC - Network and Sharing Center displays NO Internet connectivity, Windows update doesn't work - back when i had IE8/IE9 installed they didn't work either - IE10/Firefox12/Chrome connect to the Internet just fine Yes I have tried to configure PAC file with the bare minimum: function FindProxyForURL(url, host) { return "PROXY proxy.my-domain.com:8080"; } If anyone knows what to do to make this thing work, please, your help would be much appreciated.

NO need to answer this question. If anyone is interested, this is the reason why this is happening: You cannot connect to the Internet from a Windows Vista-based computer that uses a local .pac file

Hi, Thanks for sharing. We really appreciate your time and efforts. Hope your experience will help other community members facing similar problems. Thanks, Vincent Wang TechNet Community Support