Thank you for the report. It seems that AxCrypt does have problems with proxys that require login.
Do you actually expect to login to your proxy, or do you have the credentials normally stored so for example if you browse via Internet Explorer you do not need to enter the credentials all the time?
I ask because the more info I get about the setup, the better a chance I have to fix this. I’ll be updating it later today, or tomorrow in an attempt to fix this.