Fiddler 2 Wipes My Internet Explorer Proxy Settings

I just started using Fiddler 2 to create request objects for REST,JSON, and SOAP based services that I have been creating. It has worked great so far.

The problem came when I attempted to use some of my company resources through Internet Explorer. I was getting some sort of a DNS error, which I realized was happening because my proxy settings were getting wiped every time I open fiddler (IE6 and IE8). Does anyone know what Fiddler might be “fiddling” with here that would cause such a strange problem.

More info: This is happening on an Virtual PC VM running Windows XP. The exact stuff that is being blanked resides in the Tools->Internet Options->Connections->LAN Settings window. Both checkboxes there were checked and the fields in the Advanced window were populated. Afterwards, all were blanked.

Fiddler 2 Wipes My Internet Explorer Proxy Settings