I Have tried two things in three places to see if it works please do help me out.

Two methords:
1) replacing @ with %40
2) replacing @ with \@

Three places:

1) export with the .bashrc file
2) editing /etc/apt/apt.conf and setting acquires there
3) using gconf editor and setting the values in /system/http_proxy and setting authentication name and password and checking the use_authentication checkbox.

still there is no success and i still get 407 error when trying wget or apt-get update.

please do help me, been stuck with this for three hours now.

also, i read somewhere that creating a file in /etc/apt/apt.conf.d and then creating a 01proxy file with acquire might work. I tried that also, but it doesnt work.

Please help.