With the intention of tunneling web traffic through an SSH connection, the following has been done:

I've manually configured a PAC file in IE7 in the LAN Settings dialog. I've verified that traffic is routed through my SSH tunnel that is setup for SOCKS5 dynamic port forwarding. I see that IE7 is always trying to resolve the name locally first.

What I'm looking for is the ability to have the DNS name resolved at the proxy, rather than locally by the browser.

There's a setting in Firefox that specifies DNS remote resolution, and Safari does it automatically. I've verified correct operation for these 2 other browsers. It would be nice if I could get IE to work also.

This is for reference so you could understand where does the question originate from.

Notice: The question was actually found by the help of google but with no answers available. Considering how it is exactly my question I figured I should just copy/paste over here because I don't think I could describe any better (there is a small introduction though).