Our organization uses Micrsoft ISA server to secure port 80 traffic. If we choose to have Adobe host our licensing service will this work with ISA. Does it pick up the IE proxy settings or can you specify this somewhere in the client configuration file.
The license manager component embedded into Acrobat 8 picks up the IE proxy settings, so it should work fine without any settings in the Client Setup file (also know as configuration file or just Adobeconfig.xml)
Make sure to follow the instructions in the "Configuring Acrobat 8 with ALM" document to prepare your installation image. The document is available at: http://www.adobe.com/elicensing/licensemanagement/alm/pdfs/ConfiguringAdobeAcrobat8withAL M_EN.pdf