[QUOTE="silentmemory, post: 0]In using a proxy server you're simply routing traffic from your PS3 through your PC and, in this case, directing it to use port 8118. If your router isn't explicitly set to forward 8118 to the machine running the proxy, or doesn't have UPnP enabled to open the port on request, then I can't see how you're getting any internet connectivity at all?

I'm assuming your PC isn't in the DMZ, which would be a very Bad Thing™.
If it worked at all then you probably have the correct port(s) forwarded and there was just a glitch in the matrix. DMZ should be fine for the PS3 but that won't help if you choose to use a proxy.[/quote]
Yes I understand basically how it works. I do not have any port fowarding set for port 8118 (won't have to since my ps3 is in a DMZ). As far as I can remember I've never had to use port forwarding for anything within the local network, only going outbound to the WAN.
And no my PC is not in the DMZ

[QUOTE="Tom1525, post: 0]Bugggg found ***
Woke up, started my ps3 and it didnt sign me in..
Started my PC up and it did... So its looking like were going to have to keep changing the settings everytime we want to download somthing ***[/quote]
Your PC must be on and Privoxy must be loaded before using online in your PS3.
[QUOTE="Lionel Hutz, post: 0]Rekmon, in the Static IP part of the OP, you may want to place a space between steps one and two. It just looks like you type "CMD.exe2" instead of "cmd.exe".
EDIT - Sorry for the double post. I accidentally hit "quote" on my above post as opposed to "edit".[/quote]I edited it up, thanks!
[QUOTE="Dave-The-Rave, post: 0]For me it turns green everytime you load a new webpage..I think that means it is working..[/quote]
I never noticed, my PC is kinda far away from my PS3 so...
I'm thinking about taking an old junk laptop (dell p3) and running the proxy on it, just so I can mess around with the settings while near my ps3 to see if I can tweak the proxy for better results.
Thanks to everybody trying this out and posting your results. Please make sure you try to game, video chat, and download using this to see the difference and post any issues up so the rest of us know.