Dypsis,
so now, you have WebShield enabled, Script blocked disabled, redirected port disabled (by changing it to 88), proxy server configured to 127.0.0.1:12080 in IE and you can browse the web normally? Am I right ?
And you are saying, that changing the redirected port back to 80 with proxy server still configured brings the troubles back?
Thats very strange to me, since with the proxy server configured, IE should not connect to port 80 at all, so the redirected port value should not make a difference.