Using Ruby 1.9.2, rather than hacking code, this seems to work:

require 'open-uri'
puts open('http://www.rubyinside.com/', :proxy_http_basic_authentication
=> ['http://proxyhost:8080/', 'proxyuser', 'proxypass'] ).readlines

Replace proxyhost with the host name or ip address of your proxy server.
Change 8080 to whatever port it listens on.  Replace proxyuser with the
actual user name you log in to, and proxypass with the actual proxy user
password.

I couldn't find this documented anywhere.

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