Well, I've been fighting with this for the last hour. (trying to post this reply)
The only auth feature I'm using is the httpd proxy. I want to use it to keep the kids of the internet. [:)]on.
I renamed the file (proxyauth.ini) and put in an empty one and disabled the user authentication in the http proxy. All seems to be working again -- save for the lack of authentication to access the internet.
Please let me know what I can do to help you debug this situation