Symptoms

When you launch an Office 2010 application (such as Excel 2010 or Word 2010), you may be prompted for credentials for a proxy server - office14client.microsoft.com - as shown in this image:

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The prompt may repeat after being dismissed.

Cause

This is a known issue with the update described in Knowledge Base article 2956191.

Resolution

To resolve this issue, please install the update found here: http://www.microsoft.com/en-us/search/result.aspx?q=KB3054875&form=DLC

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