I have just tried to view some XBAP applications using RC1 of [NetFx]. Unfortunately it didn’t go so well because I am sitting behind a proxy server. IE has it’s connection settings defined for how to go through the proxy, but it seems that the XBAP host isn’t doing the same. I am getting this error:

System.Net.WebException: The remote server returned an error: (407) Proxy Authentication Required.

I have found some references (such as here and here) which mention changes to the machine.config, but this hasn’t solved the problem. Has anyone been able to get around this problem?