http status 407 with asp.net 2.0

[hui]

I am writing a web page to access a web service on intranet. It worked
fine with asp.net 1.1. However, I've run into "http status 407" proxy
error with my new asp.net 2.0 web project. The web reference is added
into the project without any drama.

I am not supposed to have such proxy issue as there is no firewall
between my desktop and the web service server. Any suggestions?

Thanks,

Hui