This still exists in Hardy. 
Proxy is set in both Gnome and APT. FFx works perfectly, command line apt or 
Synaptic Package Manager and Update-Manager fail to connect to the proxy.

W: Failed to fetch 
http://us.archive.ubuntu.com/ubuntu/pool/main/n/nautilus-sendto/nautilus-sendto_0.13.2-0ubuntu3_i386.deb
  Could not resolve '[EMAIL PROTECTED]'

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Doesn't honor gnome proxy settigs
https://bugs.launchpad.net/bugs/24250
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