AnalogX Proxy & Proxomitron Configuration

Background:

+ 2 machines: 1) Windows XP Pro and 2) Windows 2000 Pro
+ Home network for file sharing.
+ Separate, independent 56k dial-up on any machine (no internet connection sharing)
+ Both machines: ZA and Proxomitron; host file used to block 'nasties'

Recently, I have had some problems with internet access using Windows XP Pro. I supected the modem and decided I could check it if I had internet connection sharing. So, I set up ICS using the free AnalogX Proxy with Windows 2k Pro machine as host and the Windows XP machine as client. Simple. Works. At least, now it works . . . somewhat. I've been able to determine that I have a defective modem. That settled, I'd like to evaluate ICS further.

The first problem I encountered was when I tried to access the internet using the client machine. I got a message generated by AnalogX Proxy: "Does not support loopback URL." Seems that Proxo was the problem (not sure); cleared up on reboot.

Now, I can access the internet on the client machine . . . BUT no ad filtering, etc. because I am not able to use Proxomitron! I've tried various configuration settings but nothing brings Proxo back into the loop. The host file seems to be somehow integrated because in place of some ads I get the AnalogX Proxy message "Does not support loopback URL."

What do I need to do to get AnalogX Proxy to work with Proxomitron and host file (as it did before I installed ICS)??

Or is there a better, simple, free ICS proxy that will solve this?


Thanks,
j