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Proxy issue installing new modules on intranets

I understand if you install vers 7.16 dev desktop then you can install modules from the url. Do I need to do something else besides the upgrade? I am still getting the following error installing modules. I am a total novice to drupal.
HTTP error -10060 occurred when trying to fetch http://ftp.drupal.org/files/projects/devel-7.x-1.3.zip.
Unable to retrieve Drupal project from http://ftp.drupal.org/files/projects/devel-7.x-1.3.zip.

regards
Milton

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