I see to (maybe too obvious) possible problems; port 8080 must be opened for outgoing traffic on your firewall, and I don't think the name APPLETTRAP can be resolved.
Also, set the proxy type to HTTP Proxy, that the type that uses port 8080.
Hope this helps. . .
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Several security vulnerabilities in Firefox and the Mozilla Suite of Internet software put users of the open-source products at risk of hacker attacks, the Mozilla Foundation is warning.
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