My suggestion would be to enter HTTPS_PROXY = myhost.myco.us:8080 in splunk-launch.conf. Do not use a username and password. Reach out to the administrator's of your proxy server and ask if they can white-list the IP address of your Splunk server making the request. A good proxy should be able to allow only access to specific domains and/or URLS for a specific source IP address (your Splunk server), since you will be bypassing the proxy's authentication module. Open a ticket with Splunk to verify if they do or do not support authenticated proxies. Maybe a feature request is required.
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