Seems people have faced similar issues after installing a security patch for the .NET Framework: MS12-074: Vulnerabilities in .NET Framework could allow remote code execution: November 13, 2012
You can ask microsoft to fix it here
Workaround - Add the following registry key:
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\.NETFramework]
"LegacyWPADSupport"=dword:00000000
For 64 bit machines
[HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\.NETFramework]
"LegacyWPADSupport"=dword:00000000
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