Normally that is how proxy should be configured on the N900. But if you do that alone on the browser and skype would work. Nothing else would. I mean not one thing that requires internet would work.. no 3rd party app, no core system app nothing.. you device would be an internet lemon if you connect via a proxy. I mean its that bad.. Bad is actually an understatement. the only work around which would make the pain a bit bearable is to add http_proxy to /etc/profile and hope your favourite app uses libcurls otherwise just forget it. even then its still a bit PITA.. One can almost think that Maemo was designed not to be used behind proxy and the proxy settings is just some piece of config file no application respect. The saddest part of this is that no one seems to be paying attention to it cus not many people are affected. But every OS I have tried even symbian and Microsoft windows have excellent http proxy support. the situation in maemo is beyond pathetic. Seriously