Error Message: 12207 - Proxy Dialout Connection Failed. The RAS Connection is still Up and Good.

When you try to connect to the Internet with a client configured to use Proxy Server 2.0, you may get the following error message:

This is a change from Proxy Server 1.0. With Proxy Server 1.0, even if the dial failed, the Proxy Server would try to connect. This behavior was changed by design for Proxy Server 2.0.

WARNING: Using Registry Editor incorrectly can cause serious, system-wide problems that may require you to reinstall Windows NT to correct them. Microsoft cannot guarantee that any problems resulting from the use of Registry Editor can be solved. Use this tool at your own risk.

You can modify the registry to revert back to Proxy 1.0 behavior:

1. Start Registry Editor.
2. Create the following registry value:

      HKeyLocalMachine/System/CurrentControlSet/Services/W3Proxy/Parameters
   
      Value Name: DialFailFailsConnect
      Data Type:  REG_DWORD
      Data:       0
   						

A value of zero (0) reverts back to Proxy 1.0 behavior. Any other value specifies the new behavior in Proxy 2.0. You can not use an user interface to make this change.