What is proxy server

This poped up what is it and is it anything to worry about

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I'm guessing you did not installed a proxy server or you forgot that you installed one.

Try asking around your family/room mates if they used your computer and installed a proxy server. If they did not try following the steps here.
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Actually, this isn't related to a "proxy server" but rather a "proxy desktop".

This thread here has a few suggestions; and a few members appear to have been successful with them.

http://www.outpostfirewall.com/forum/showthread.php?t=6212

this happend the day after i uninstalled my superanti spyware could this be why

And nobody else uses my computer I use a password and make sure my i'm log off everytime i'm not around but I do have a guest account
and no i didn't download this i never heard of this

and i run all those logs regularly I just did the logs two days and posted them

I found this from here: http://www.outpostfirewall.com/forum/showthread.php?t=6212

The proxy desktop is related to windows Explorer freezing. If you open Task Manager you should see multiple instances of Explorer.exe. Ending the processes in Task Manager should stop the error message.

There's a rather obfuscated explanation at MSDN, under remarks.

In addition, please untick- Windows Explorer >Tools > Folder Options > View > Launch folder windows in a separate process - and see if that helps. Having this on is supposed to increase system stability by opening each folder in a separate part of memory. But sometimes performance takes a hit and may be related to this problem. Experiment!