This is a new installation of LR1152p1 on the Windows 7 64bit machine with IE9
The DEP is disabled, the UAC is set to never, the windows firewalls are off and I am a local admin on the machine.

We are seeing this in the recording log.
Small number of events is being captured during recording with VuGen. Similar to the following errors are seen in the recording log:

[Net An. Warning ( 38c: f38)] Request Connection: Remote Server @ XXX.XXX.XXX.XXX:80 (Service=) Failed attempt #3. Unable to connect to proxy (@ LOCAL.IP.ADDRESS:9934): sid = 1740, rc = 10035)

[Net An. Error ( 38c: f38)] Request Connection: Remote Server @ XXX.XXX.XXX.XXX:80 (Service=) NOT PROXIED! (REASON: Unable to connect to proxy: sid = 1740, rc = 10035)

[Net An. Warning ( 38c: b64)] Request Connection: Remote Server @ XXX.XXX.XXX.XXX:80 (Service=) Failed attempt #3. Unable to connect to remote server: rc = -1 , le = 0)

[Net An. Error ( 38c: f78)] Request Connection: Remote Server @ XXX.XXX.XXX.XXX:80 (Service=) NOT PROXIED! (REASON: Unable to connect to remote server: rc = -1 , le = 0)

And nothing is in the script.

What am I missing?