Here's an explanation I've given in
this thread
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Originally Posted by ikehiker
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Here's my understanding or the "Work" vs. "Internet" settings. M$ came up with these terms in PPC2000 (maybe even before) at a time when most people used dial-up at home and LAN connections at work. The Internet (and now "My ISP") usually works with a direct connection to an internet server such as you have with with a dial-up connection or the use of a proxy server. "Work" generally is the best setting when you have a local area network, which many people now also have at home with broadband connections and wireless routers.
I must say I've never been willing to spend the money to connect to T-mobile at Starbucks but I suspect is also acts as a LAN in which case "Work" would be the proper choice. It's probably less important there since you probably aren't likely to be connecting to your PC for ActiveSync or folder shares, and this is where the difference usually shows up.
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Some users have posted that as long as both dropdown list are set the same, you can use either but I generally recommend people use Work for their LAN connections. Having them set to different choices (one Work and one Internet) often causes the Internet Explorer to report "the page cannot be found."
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-Ike-
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