NIS 2014 Firewall

HP WIN7 desktop machine working fine up until about a week ago. Now getting error message:

 

"The proxy server isn’t responding

  • Check your proxy settings 127.0.0.1:8000. Go to Tools > Internet Options > Connections. If you are on a LAN, click “LAN settings”.
  • Make sure your firewall settings aren’t blocking your web access.
  • Ask your system administrator for help."

Norton Smart Firewall is active, Windows Firewall isn't

 

Norton can update but IE won't work

 

Should the current proxy server setting just be taken out? Did something else change it?