Hosting issue, help required

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ASP.NET

PayPal

hello,

I have a website running on 1and1 hosting server. It has a shopping cart,for payment we are taking customer to paypal website and are using paypal ipn to update our database after successfull payment. The problem is 1and1 server is not allowing paypal ipn to do any processing, hence what happens payment collected or not, our database not being updated due to paypal can not do any processig on 1and1 server. All transactions in database has payment status as Non Paid because paypal ipn process was supose to upadte the status to Paid.

I have made contact with 1and1 hosting company and they provided me with 1and1 proxy server details and tehy asked me to put following code in web.config

<system.net>
   <defaultProxy>
     <proxy usesystemdefault = "false" bypassonlocal="false" proxyaddress="ntproxyus.lxa.perfora.net:3128" />
   </defaultProxy>
 </system.net>

Still after placing this code, paypal ipn is not been able to do any process. I know thsi might be their hosting issue and they are looking at it but i want to take expert's opinions here. Is there any thing at my side i m doing wrong, or is there any thing i should do to let paypal ipn work.

Thanks in Advance,

Asfand