Event ID - 127

Event Id127
SourceWebProxyServer
DescriptionThe Web Proxy Service failed to initialize
Event InformationWhen you restart a computer that is running Microsoft Proxy Server 2.0, the Web Proxy service may not start. When this occurs, Event Viewer lists this event. 
CAUSE:
Several different configuration issues can cause this event to be logged. If the Data box contains "0x0000003b" as described in the "Symptoms" section, one known cause is that a service that is listening on port 1080 is running. Because a service is already bound to port 1080, the Socks Proxy service that listens on port 1080 by default does not bind to the socket. The result is that the Web Proxy also does not initialize, causing event ID 127 to be logged. 
RESOLUTION:
To resolve this issue, disable the Socks Proxy service. For more information click on the link given below.
Reference Links Error Message: Event ID 127: The Web Proxy Failed to Initialize

The Web Proxy Service Stops Responding

Troubleshooting and Resolving Web Proxy Event ID 127

Proxy 2.0 Installed on Windows 2000 Does Not Start

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