proxy.pac not working correctly in IE11

[disturbedone]

I've never quite managed to get a proxy.pac file working 100%. In the past I've just let is slide and some things are sent to the proxy when they should go direct but in my current role that isn't good enough.

I've used

http://home.thorsen.pm/proxyforurl

and it says all is ok. I've also used AutoProxy command line utility and it again says all is ok. But things that should be sent direct still go to the proxy.

It appears to work fine in Firefox.

IE11 has HKCU\SOFTWARE\Policies\Microsoft\Windows\CurrentVersion\Internet Settings\ {REG_DWORD} EnableAutoproxyResultCache set to 0.

My file is pretty simple:

function FindProxyForURL(url, host)
{
	if	(isInNet (dnsResolve(host), "10.26.0.0", "255.255.0.0"))
	return "DIRECT";
		
	else if	(isPlainHostName(host))
	return "DIRECT";
		
	else if	(shExpMatch(url, "*.mydomain.com"))
	return "DIRECT";
		
	else return "PROXY proxy01.mydomain.com:8080"; "PROXY proxy02.mydomain.com:8080";
	
}

Things like server.mydomain.com still go to the proxy rather than direct. I've tried various combinations of the code (with and without 'else' etc) but nothing changes.

EDIT: I also found referenes to the PAC file must be in ANSI format, not Unicode, to work in IE but the file is already in ANSI.

Any ideas how to get it to work 100% in IE11?