Comment 46 for bug 427625

Fiddler, can you verify that privoxy is even running?
Can you post the output of "sudo ps auxww|grep privoxy" and "sudo netstat -anp | grep 8118"?
Oh, and to check if privoxy is not only running, but also you can connect to try "telnet localhost 8118" or "telnet 127.0.0.1 8118".

By the way, over at https://bugs.launchpad.net/ubuntu/+source/privoxy/+bug/571148 miq seems to have found the cause of the problem.