I tried without the proxy with same results as in screen shot.  Command line I used was:

cudaminer.exe -a scrypt -u Batshit.GPU -p p4ssword

I have since installed cpuminer and it is cranking along just fine at an awesome 54 khs/s.  It's an always-on and underutilized home business server, so meh...whatever.   

I really want to get the GPU hashing to maximize my losses.