apt-get does not work after upgrade [SOLVED]

Hi Guys,

I do a fresh install of yavdr0.30a from CD.
proxy information is asked during installation and I give it
After installation is finished the system reboots, I configure it a little further and get everything working just fine. Then I do

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sudo apt-get update
sudo apt-get upgrade

This works and runs the update to system, but hangs to rsyslog, so do

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stop rsyslog-delay
aptitude -f install

as instructed in this forum.
Now the problem is that when I do

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sudo apt-get update

I cannot connect to ANY update servers anymore, but gives me a long list of errors like this

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..
..
W: Failed to fetch http://security.ubuntu.com/ubu…niverse/source/Sources.gz Unable to connect to 192.168.0.1:800:
W: Failed to fetch http://security.ubuntu.com/ubu…e/binary-i386/Packages.gz Unable to connect to 192.168.0.1:800:
W: Failed to fetch http://security.ubuntu.com/ubu…tiverse/source/Sources.gz Unable to connect to 192.168.0.1:800:
E: Some index files failed to download, they have been ignored, or old ones used instead.

where 192.168.0.1:800 is my proxy server

I'm lost ?

You are right,
something does not work in the network, but what ?

I have an ssh connection to the yavdr machine,
yavdr machine can stream photos and videos from my NAS server..

So I have a network connection, but only internal network.
For some reason yavdr machine refuses to go through the proxy completely,
not even the firefox works when manually configured to use the proxy.

Funny thing is that it worked, it loaded and installed a hefty pile of a packages straight out of the box after fresh install, but has no connection after the upgrade. Proxy log only has markings about the 1st upgrade several hour ago, nothing since then.

This is not Dual-boot machine, so I would think this is not the dual-boot issue related to realtek chips, but I tried those "corrections" anyway, no luck there.

Now I'm truly astonished.

I have read google like a maniac, tried numerous things and scratched my head until it's sore.

Mentally admitting that maybe I need to go do a fresh clean install again and not do apt-get upgrade but only install the things I need individually.

But, as some of the things I need are vdr-plugins,
I, as a last desperate measure, decide to use web-front-end to try and install some plugins (yavdr packages).

To my suprise, they do pass the proxy and install fine ??
I go back to my ssh terminal and sure thing, apt get update now works and i'm finally able to install nano and other things I need.

I have no idea why, but it now Works

Thanks for zeus-cu for an answer.