I have exactly the same problem with SuSE (8.2 and now 9.0).
My sysdadmin only supports Windoze users, and gives http://autoproxy.city.ac.uk
as my proxy address. This is a script which you can download with either "lynx -dump <address>" or with "wget" and examine.
The script checks if the page you request is local or not (ie should it be served directly) and if not, then sends you to one of several 'real' proxy servers eg wwwcache2.city.ac.uk:8080 .
Mozilla works fine but neither YAST, Konq, or anything else will connect, as only Mozilla with it's Netscape heritage has any inclination to recognise an autoproxy.pac file.
Nobody has given me any useful information and I have been stuck with this problem for 8 weeks. Surely there is an answer?