Godaddy site says to use http://proxy.shr.secureserver.net:3128 for the CURLOPT_PROXY.
See http://help.godaddy.com/article.php?article_id=288
This is the code that I modified from an earlier version of ipn.php
function authenticate($domain) {
$paypal_response = '';
$curl_flag = function_exists('curl_exec');
if($curl_flag) {
$ch = @curl_init();
@curl_setopt($ch, CURLOPT_URL, "https://$domain/cgi-bin/webscr");
@curl_setopt($ch, CURLOPT_POST, true);
@curl_setopt($ch, CURLOPT_POSTFIELDSIZE, 0);
@curl_setopt($ch, CURLOPT_POSTFIELDS, $this->_response_string);
@curl_setopt($ch, CURLOPT_RETURNTRANSFER, true);
@curl_setopt($ch, CURLOPT_TIMEOUT, 120);
@curl_setopt($ch, CURLOPT_SSL_VERIFYPEER, false);
//BEGIN GODADDY FIX
//@curl_setopt($ch, CURLOPT_HTTPPROXYTUNNEL, TRUE);
@curl_setopt($ch, CURLOPT_PROXYTYPE, CURLPROXY_HTTP);
@curl_setopt($ch, CURLOPT_PROXY, "http://proxy.shr.secureserver.net:3128");
//END GODADDY FIX
$paypal_response = @curl_exec($ch);
@curl_close($ch);
if($paypal_response == '') $curl_flag = false;
}