Hi all, Thnx a lot for all the help. I've already downloaded headers thru yum and next I will address an issue on missing GPG keys for updating. Issues solved: - the exported variable name was upside down. Correct one: http_proxy (that was an UGLY slip). :)) - I DO have to provide the proxy password within the variable, as yum does not prompt for it and immediately fires up an [HTTP Error 407: Proxy Authentication Required]. - Domain name needs NOT to be specified in the variable. - I removed from yum.conf all URLs with IP addresses - not needed at all. Cheers Thiers