This enhancement has been incorporated in Release 2010b (R2010b). For previous product releases, read below for any possible workarounds:
This error is triggered by the presence of an NTLM proxy which interferes with the automatic (Internet-enabled) installation of MATLAB. As a workaround, MATLAB can be installed via the manual (offline) installation method. See the Related Solution "Can I install & activate on a computer manually that cannot connect to the Internet?" for instructions on the manual installation method.
