"I am not using a proxy server. "
Doesn't matter... basically what you are doing can't be done. We have discovered that you can not import webparts through a gallery that lives on one server to a workspace on another server. It's an unpublished feature
![[wink] [wink] [wink]](/data/assets/smilies/wink.gif)
from our Microsoft friends. So, if the Gallery exists on Server A (Microsoft.com in this instance) and you are in a workspace on Server B and click the Microsoft Webpart Gallery and try to import a webpart, it will fail as yours did. Even if Server A is behind your firewall or on your domain... still can't be done. Microsoft is aware of this and trying to resolve it, but it probably won't be fixed until V2... IMHO. This forces you to create your own gallery on every server you have containing workspaces.
MS and everyone else will tell you to configure proxycfg... which you need to do even if you don't have a firewall, but it doesn't solve this problem. But, again, do it anyway. Run it and enter a bogus firewall... it needs something in proxycfg. I can't recall the specific issues it WILL resolve, but there are some.
Also, there is some documentation showing you how to use SQLServer to create your own gallery. I haven't tried this because we aren't a SQLServer shop (for the most part... yet), but you can create a "personal dashboard" and name it "Webparts Gallery" on your server (any workspace) and modify the Microsoft Webparts Gallery link in the catalogs.xml file in the Resource folder to point to the new gallery. To populate the Gallery, just open the gallery dashboard, click the Content link and import parts.
Hope that helps!