I am on a fully up-to-date Intrepid and I am getting the same problem.
It has resulted in much frustration with instability. Is there any
workaround to get rid of the 'proxy settigns from hell' problem?

Description of bug:

Open gconf-editor, and delete proxy and http_proxy settings. Close
gconf-editor, and reopen it, and the settings are unchanged (i.e. the
proxy settings are still there. Do this with preferences, network proxy,
apply system wide, and save. Restart a terminal or restart the computer
and type echo $http_proxy and the deleted settings are still there.

Where is this stored, and how can I edit it manually to get rid of the
problem until the bug is resolved?

thanks
derek

-- 
http_proxy environment variable is not being updated
https://bugs.launchpad.net/bugs/271108
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