It seems I was too hasty with my previous answer. Diafaan SMS Server does support proxy servers, it uses the default Windows system settings set in Internet Explorer.
The problem might be that the Diafaan SMS Server service runs as System Account and perhaps the proxy settings for the system account are not correct. You can try changing the logon credentials in the Service Control Manager for Diafaan SMS Server to the Administrator Account or to a (your) User Account and see if that solves the problem.
Diafaan SMS Server 1.5.4 does not support the use of a proxy server. I will have a look to see if it is possible to enable this in future versions.
I get the following error when testing the gateway:
The remote server returned an error: (407) Proxy Authentication Required.
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