I have setup maven proxy settings in conf/settings.xml as
true
http
Your settings file should look like the following:
true
http
If that's not working, then try putting your proxy settings into a browser like IE and see if it works. Also try hitting the proxy directly to ensure it's not a proxy configuration script. I don't know if maven plays well with those or not.
Though if it is a configuration script, the script should list out the correct proxy to use in your situation.
EDIT
I see you are working form conf/settings.xml where is that located? Normally the settings.xml file is located in:
/path/to/user/home/.m2/settings.xml
for you in windows that would be
C:\Documents and Settings\username\.m2\settings.xml
or
C:\users\username\.m2\settings.xml
or put it directly in your maven projects POM file.