Remove the entry from Host1URL. This is used to force the configuration down, but must be removed afterword in order for Java LiveUpdate to use the proxy, otherwise it will just connect to this specified host.
Run LiveUpdate. LiveUpdate will connect through the proxy on this attempt.
Alternate solution to this issue, manually reverting the liveupdate configuration: (Note: Only use this method if the above steps have failed)
Login to the SSIM via SSH and switch user to root using "su -"
Download and transfer the liveupdate.conf file to /tmp directory on the SSIM.
Move, rename, or delete the old liveupdate.conf file from the /etc directory.
Move the new liveupdate.conf file from the /tmp directory to /etc directory. mv /tmp/liveupdate.conf /etc/liveupdate.conf
Change the permissions on the file to 640 chmod 640 liveupdate.conf
Change ownership of the file to sesuser with the group of ses chown sesuser:ses liveupdate.conf
Run liveupdate twice, the first time will download the settings and encrypt the file. The second time it will connect and update.