Office 365 Hybrid Issue (with Exchange 2010) Non Existent Proxy Issue

Hi All,

I am experiencing a strange issue and I am wondering if anyone can point me in the right direction.

I am looking at a problem with an Office 365 Hybrid - Exchange 2010 onsite server.

We did not set this hybrid up - and they are having some issues with it.

As part of my testing I ran the "Test-FederationTrust -UserIdentity administrator -v"

This returned some errors. 

VERBOSE: [06:13:32.667 GMT] Test-FederationTrust : Failed to retrieve Federation Metadata from the Microsoft Federation
Gateway. This operation will be retried in a few seconds. Last error: System.Net.WebException: Unable to connect to
the remote server ---> System.Net.Sockets.SocketException: A connection attempt failed because the connected party did
not properly respond after a period of time, or established connection failed because connected host has failed to
respond 10.1.1.8:8080

This tells me that Exchange is trying to communicate with Microsoft Online via a proxy server at 10.1.1.8:8080 - this proxy server has not existed on this network for some time.

Digging around I found that a proxy had been set under the Exchange Object and removed it using the command "Set-ExchangeServer -Identity  -InternetWebProxy $null".

The Get-ExchangeServer now lists no InternetWebProxy.

When I run the test "Test-FederationTrust -UserIdentity administrator -v" now, I see its trying to connect using another proxy server (which has not been around for even longer)

VERBOSE: [06:13:32.667 GMT] Test-FederationTrust : Failed to retrieve Federation Metadata from the Microsoft Federation
Gateway. This operation will be retried in a few seconds. Last error: System.Net.WebException: Unable to connect to
the remote server ---> System.Net.Sockets.SocketException: A connection attempt failed because the connected party did
not properly respond after a period of time, or established connection failed because connected host has failed to
respond 10.1.1.1:8080

1. I have confirmed there is no proxy set in IE
2. I have dug through and removed all references to this proxy server in the registry
3. I have configured there is no 'wpad' record in DNS and there are no auto proxy settings in any DHCP servers
4. I have confirmed that the "netsh winhttp show proxy" returns :

Current WinHTTP proxy settings:

Direct access (no proxy server).

Can someone suggest where else Exchange would be getting the proxy settings and the approprate commands to remove the proxy setting ?

Ta.