... Here is my configurations in detail: A. No Proxy, refuse to connect to Internet: Router / Gateway: 169.254.32.32 DNS: 169.254.32.32 770 IP: 169.254.32.15 (770 "sees" all above configurations, but cries "Link-local" and does even try to use the gateway...) B. With proxy, Internet works: Router / Gateway: 169.254.32.32 DNS: 169.254.32.32 770 IP: 169.254.32.15 Proxy Machine: 169.254.32.16
169.254.0.0/16 - This is the "link local" block. It is allocated for communication between hosts on a single link. Hosts obtain these addresses by auto-configuration, such as when a DHCP server may not be found.
3. Private Address Space The Internet Assigned Numbers Authority (IANA) has reserved the following three blocks of the IP address space for private internets: 10.0.0.0 - 10.255.255.255 (10/8 prefix) 172.16.0.0 - 172.31.255.255 (172.16/12 prefix) 192.168.0.0 - 192.168.255.255 (192.168/16 prefix)