osad is unable to connect to a RHN Satellite via a HTTP Proxy

Issue

• When OSAD is connected to a HTTP Proxy, it is unable to make a XMPP (Jabber) connection to the RHN Satellite server, and generates the error message:

    jabber_lib.main: Unable to connect to jabber servers, sleeping 111 seconds

• OSAD not using proxy entered in osad.conf
• OSAD cannot connect to Satellite via a Squid proxy
• I have tried to change the "httpProxy" Directive in /etc/sysconfig/rhn/osad.conf but when I restart osad it just ignores the entry and tries to conntact the redhat satellite server directly on port 5222. The error message:

Starting osad: Traceback (most recent call last):
  File "/usr/share/rhn/osad/jabber_lib.py", line 252, in setup_connection
    c = self._get_jabber_client(js)
  File "/usr/share/rhn/osad/jabber_lib.py", line 309, in _get_jabber_client
    c.connect()
  File "/usr/share/rhn/osad/jabber_lib.py", line 567, in connect
    jabber.Client.connect(self)
  File "/usr/lib/python2.6/site-packages/jabber/xmlstream.py", line 488, in connect
    raise socket.error("Unable to connect to the host and port specified")
error: Unable to connect to the host and port specified