Thank you for posting to this newsgroup.
Please take a look at this article that talks about the problem you are
having.
Err Msg: 12207 - Proxy Dialout Connection Failed
Q196925
http://support.microsoft.com/support/kb/articles/Q196/9/25.asp
Please let us know if the KB article above does not help!
Thanks,
Mohanchand Koduri
Microsoft Technical Support
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