When you connect to a local web server using the IP address or FQDN (http://webserver.domainname.com), Internet Explorer connects through the Proxy server, even though you have Bypass Proxy Server for Local Addresses enabled?
If you connect using a host name (http://webserver), Proxy is bypassed?
The Bypass Proxy Server for Local Addresses option only checks host name. To bypass a domain name or range of IP addresses, use the proxy exception list:
1. Internet Explorer / Tools / Internet Options.
2. Select the Connections tab.
3. Press LAN Settings.
4. Press Advanced.
5. Type the exceptions into the Exceptions box.