How To Set An Android Device To Use A Static IP In WIFI Connection
1. On the Settings, Click Wireless Controls.
2. Then go to WIFI Settings. Click menu and press Advanced.
3. Browse until you see the IP Settings.
4. Check or enable "Use Static IP".
5. Enter the IP Address, Gateway, Netmask and DNS settings.
Of course this alternative solution does not solve the proxy settings issue I have. Rest assured I will share it here as soon as I have the answer :)