Adsubtract won't work on Wanadoo Broadband service. Why ?...

I'm getting really wound up with constant Advertisements on the Internet. That's why I downloaded Adsubtract SE v2.52. The only thing is, when I run Adsubtract, it requires me to change my proxy settings to ON and to HTTP 127.0.0.1 Port 4444 in my internet options. When I then try to access the internet, Wanadoo(or Freeserve) won't let me access the internet at all and they insist that I turn my Proxy Settings to OFF. This seems to me that Wanadoo won't allow me to block any ads on the internet.
I would very much appreciate some help if somebody knows a work-around for this problem, or some alternative software that might do the trick, (freeware first as I'm Skint).
I have thought of changing from WANADOO to something else, but unfortunately that isn't an option for me at the moment as it's not all my decision.

These are some of the specifics of my system, just in case it makes any difference to any advice:-

Windows XP SP2
Internet Explorer 6
Wanadoo 1.1Mbps USB Broadband
AMD XP 2400+
Plenty of RAM and HD Space
ZoneAlarm
AdAware SE
SpySubtract
SpyBot S&D
SpywareBlaster
Spywareguard
Norton SystemWorks 2005
Various other bits and pieces.

All I was trying to find out in the first place was how can I stop the file BANNER.GIF being loaded by my browser ?. Adsubtract was the only answer I've found so far, and it doesn't work !!!!!