IE not detecting proxy server hosted on a VM

I was writing a proxy server in C#.NET. My Proxy server has been hosted on a VM (say vm1). Now when I access internet through IE in vm1 the request goes through the proxy server as expected. But if I use another VM say vm2 to access internet through IE the 'Internet Explorer cannot display the webpage' is displayed. I checked the proxy settings for IE. It looks correct. The request is not reaching the vm1 at all I think. Otherwise, the proxy server would have 开发者_StackOverflow社区logged who requested.

Need help guys.

-datte

This is my 'route print' output. This is on a VM.

===========================================================================
Interface List
0x1 ........................... MS TCP Loopback interface
0x2 ...00 0c 29 f9 86 a5 ...... AMD PCNET Family PCI Ethernet Adapter - Packet Scheduler Miniport
===========================================================================
===========================================================================
Active Routes:
Network Destination        Netmask          Gateway       Interface  Metric
          0.0.0.0          0.0.0.0      192.168.0.1   192.168.0.104   10
        127.0.0.0        255.0.0.0        127.0.0.1       127.0.0.1   1
      192.168.0.0    255.255.255.0    192.168.0.104   192.168.0.104   10
    192.168.0.104  255.255.255.255        127.0.0.1       127.0.0.1   10
    192.168.0.255  255.255.255.255    192.168.0.104   192.168.0.104   10
        224.0.0.0        240.0.0.0    192.168.0.104   192.168.0.104   10
  255.255.255.255  255.255.255.255    192.168.0.104   192.168.0.104   1
Default Gateway:       192.168.0.1
===========================================================================
Persistent Routes:
  None

And, this is my ipconfig output

Windows IP Configuration


Ethernet adapter Local Area Connection:

        Connection-specific DNS Suffix  . : 
        IP Address. . . . . . . . . . . . : 192.168.0.104
        Subnet Mask . . . . . . . . . . . : 255.255.255.0
        Default Gateway . . . . . . . . . : 192.168.0.1

My proxy server is hosted in a machine with IP 192.168.0.102.

Help would be greatly appreciated.

-Datte