I talked to Martin at the Westfield Centre today and he informed me that a couple of the issues with the NED have been sorted by LUNS
1. If a site is blocked by smartfilter, then the NED doesn't block the re-driection page anymore so you can now ask for the page to be unblocked (like we used to be able to/are able to if you don't use a NED) :)
2. The .pac file has been adjusted so that local resources such as intranet webservers are visible again.
The remaing issue of sites such as Hotmail being really, really slow to access is still being investigated and there was a meeting last week about it.