DynDNS Updater Fails for Fresh Install on OS X Lion

Followed setup Setup Instructions but do not get to the "wizard/user/ setup" stage.

Instead 'DynDNS Updater' becomes unresponsive ( in the Activity manager ).

dyndnsupdater.log gives:

The DynDNS Updater Daemon Installer running...
Killing any currently running DynDNSUpdaterService daemon.
Making sure /usr/local/dyndns exists.
Creating /usr/local/dyndns
Installing daemon from /Applications/DynDNS Updater.app/Contents/Resources.
Creating DynDNSUpdater StartupItem.
Installing StartupItem from /Applications/DynDNS Updater.app/Contents/Resources.
Log: 1  Time: 2011-10-4 12:11:36  Level: 1  Message: Added interface gif0 (gif0).
Log: 2  Time: 2011-10-4 12:11:36  Level: 1  Message: Added interface stf0 (stf0).
Log: 3  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface en0 (Ethernet).
Log: 4  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface en1 (Wi-Fi).
Log: 5  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface p2p0 (p2p0).
Log: 6  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface fw0 (FireWire).
Log: 7  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface vnic0 (vnic0).
Log: 8  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface vnic1 (vnic1).
Log: 9  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface Web-based IP detection (Web-based IP detection).
Log: 10  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface Web-based IP detection (bypassing Proxy) (Web-based IP  detection (bypassing Proxy)).
Log: 11  Time: 2011-10-4 12:11:37  Level: 1  Message: Added interface Default Interface (Default Interface).
Done, exiting...

Finally DynDNS Updater comes back however attempting to create an account returns:

Auto Configuration Error
The DynDNS Updater was unable to connect to the DynDNS server and update the hosts for XXXX
Please check your network connection and try again

I can confirm that all my network settings are sound. However I am using a sock 5 proxy to access the Internet.

How do I configure the updater to take this into account (I'm assuming it does not).

Thanks in advance.