i am using Kali Linux(Debian7) on Vmware,

Virtual machine setting:
network connection - NAT : Used to share host IP address

When Iceweasel browser setting
Edit-preferences-Advance-network-setting-Use system proxy setting
i can access internet through Iceweasel browser

but when i change setting as
Edit-preferences-Advance-network-setting-Manual proxy configuration
HTTP proxy 127.0.01 Port 8080

i am getting error as
"The proxy server is refusing to connections
Iceweasel is configured to use a proxy server that is refusing connections"

i will appreciate any assistance on this.