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MHJITSUPPORTFlag for Australia

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GPO is disabling proxy settings when it shouldn't be

Hi all,

As the title suggests, we have a computer joined to our domain which needs to have custom proxy settings enabled for Internet Explorer. Each time gpupdate runs it clears the use proxy checkbox, however to the best of my knowledge there are no GPO's linked that should even touch proxy settings.

Here are all the details I have so far;

2 computers on a remote site are joined to our company domain and in the same OU.
Both computers are logged in with the same user, both with the same custom proxy settings set.
The first computer (PC1) keeps its proxy settings when gpupdate /force is run, the other (PC2) does not. The proxy address is saved, however the use proxy settings checkbox is cleared.
I have rejoined the problem computer (PC2) to the domain, with a new computer name and moved it to the correct OU (same OU as PC1).
Both PCs are Windows XP SP3 with IE8.
IE 8 has been reinstalled from add/remove programs.
IE settings have been reset from advanced tab.
There are no toolbars/extensions/add-ons etc outside of the default MS ones + Adobe + Java which are disabled.

It is definitely group policy that is applying the change but it has me stumped as to what policy is doing it, and why it is doing it, considering the PCs are in the same OU along with the same user account being used on both. You would expect them to behave the same.

Any help provided is greatly appreciated.
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Shane McKeown
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Want that for the 2 machines sorry...same command on both
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Coralon
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Was guided in the right direction by experts. Clearly defined solution in self post.