Why does unchecking the "use automatic configuration script" box on Internet Explorer 8 fix connectivity errors?

As long as I have been in the job and we have been using IE as our browser, we have controlled the proxy settings with an automatic configuration file.
Recently, with IE8 on WinXP and Win7, we have had situations with the user getting various connectivity errors. By unchecking the "use automatic configuration script" box, they start working. But we don't change anything else.
These error are not consistent from machine to machine.
We are in a AD Domain environment
These are the two errors I have documented.
Error: 5
Description: The 'Microsoft.ACE.OLEDB.12.0' provider is not registered on the local machine.
Access to resrouce is forbidden by server while attempting to access server at
http://content.mpl.org/cgi-bin/admin/pwtest.exe?CISOVER=60.
Please check the permissions to the file on th eserver.
Two very different problems. Both somehow fixed by unchecking the box.
The config file itself has not been changed in over a year.
Can anyone explain why unchecking this box, but not making any other changes to the proxy settings would fix connectivity problems? These are all external sites that need to go through the proxy.
Thanks.

Hi,
You can use the steps in the following thread to disable this option:
uncheck "use automatic configuration script" in IE LAN settings 
http://social.technet.microsoft.com/Forums/en-US/winserverGP/thread/05a7c683-075e-435c-8583-da8fd3559cf2
Or try to
reset Internet Explorer settings and select use automatic configuration script to see whether it could work.
Hope this helps.
Vincent Wang
TechNet Community Support

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