Try Fiddler to watch the HTTP connections when working and not:
http://www.fiddlertool.com/fiddler/
This will give you a place to look for what is going on. Watch the user that
is connecting, as well as the actual request.
It is also possible that Internet Explorer is set up differently on this
box. The settings in IE cascade through the entire HTTP stack in some places
and can cause issues. That would be another place to look.
If you client has a proxy the "Bypass proxy for local connections" should be
checked for a web service on the internal network.

Signature
Gregory A. Beamer
MVP; MCP: +I, SE, SD, DBA
***************************
Think Outside the Box!
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> Hi,
>
[quoted text clipped - 27 lines]
> Any help is greatly appreciated - the client wants me to have it fixed
> before the New Year...
Sergey Poberezovskiy - 08 Jan 2006 06:42 GMT
Gregory,
1. Not sure how to set up the fiddler to "listen" to web service requests
from .Net applications - saw similar cry from their website's discussions
with no answer...
2. Tried to replicate the request directly from the fiddler - works like a
charm on other computers, but returns Result: 0 and Session State: Aborted on
the one with the problem - and no Response. Not sure how I can use this
information...
3. IE seems to have pretty much the same settings - as far as I know, they
are standard within the organization, and have not been modified since...
4. Web service is on the Internet - do not think that "Bypass proxy for
local connections" could have anything to do with that...
Any help?...
> Try Fiddler to watch the HTTP connections when working and not:
> http://www.fiddlertool.com/fiddler/
[quoted text clipped - 40 lines]
> > Any help is greatly appreciated - the client wants me to have it fixed
> > before the New Year...