And I could probably have fixed it under the older version had I spent a little more time reading the help file. Never mind, I expect downloading 4.0.3 was a Good Thing anyway.

boils down to this: in the proxies dialogue, it lists Non-proxied destinations, non-proxied protocols, then whatever proxies you define. It processes this list from top to bottom, and since 'Non-proxied destinations' defaulted to 'Active', it decided that every request didn't need to be proxied. Funnily enough, disabling that option now causes everything to be directed through my proxy server. Yay. Nice to see three little disco lights blinking on my hub instead of just two :)