I configured Maven 3.0.3 and tried to download a sample project using archetypes with this command:
mvn archetype:generate -DarchetypeGroupId=org.graniteds.
I was having exactly the same problem.I went to my IE setting->LAN Settings.Then copied the Address as host and port as the port and it worked. Following is the snapshot of the proxies tag in the Settings.xml that I changed.
optional true http webtitan 8881