Microsoft updates (and the new AOL IM 7) knock out connectivity through Internet Explorer

Question

I'm on a Dell XPS 420 using Windows Vista and Internet Explorer 7.

For a long time I've had a problem where the latest Microsoft update would knock out connectivity through IE. I could still see the Internet as long as I used Firefox, but not if I used IE. I discovered that the problem was a setting in IE that was being changed back with every new update. You can find the setting in Internet Explorer by going to Tools --> Internet Options --> Connections --> LAN settings --> Proxy Server.  The box labeled "Use a proxy server for your LAN (These settings will not apply to your dial-up or VPN connections)." That box needs to remain unchecked in order for me to be able to connect to the Internet through IE. I can't tell you how many times I have unchecked that box. For some reason with every new update (including IE 8) that box gets sticky. I uncheck it and close out, and when I open it again the box is checked again. I've managed to work around the problem by avoiding any new updates from Microsoft.

This brings me to my problem. The new version of AOL IM, version 7, causes the same problem. So now, I can't have both AOL IM 7 loaded on my machine and connectivity to the Internet through IE. It wouldn't be a big deal, except that other programs on my machine access the Internet through the settings established in IE. I can't see images that come into my email because Outlook accesses the Internet through IE. Same with iTunes.

Very frustrating. Anybody know how to fix this bug?