Here is documentation:
http://technet.microsoft.com/en-us/library/dd361918.aspxDIRECT would mean there is NO proxy involved, the browser should translate the name on it's own using a DNS server and then connecto to the DNS-supplied address.
Otherwise it would return something like: "PROXY proxy-server:8080"
The latter depends if the browser supports proxy configuration, Firefox can use it too, my guess is that every serious browser can handle this.
(Firefox: Extra> options> advanced> network> connection> settings)