I have Visual studio 2010 Premium installed on Windows 7. When I try to connect to an online gallery or online template, I get an error message like this:
For me, the above config changes does not work in you're in a Windows Active Directory environment. Comment whatever you put in above out altogether.
What I did:
Go into Credentials Manager (Windows 7 or 8) and add the proxy credentials of whatever username that comes up in the proxy dialog, e.g. VSCredentials_corp-proxy.domain.local/username and then your Windows password.
Bada bing, I'm in!