This is happening to me also.  Doing the steps in #20 makes no
difference.

Ubuntu proxy settings are set to auto-detect, configuration URL empty.
Case 1:  Home where I don't have a proxy - Empathy works as expected.
Case 2:  Work WITH (squid) proxy - Empathy cannot sign in "no reason specified"
Case 3:  Work, changed settings to NO proxy (I have special network access).  
Empathy works as expected.
Case 4:  Work WITH proxy, changed settings so that configuration URL set - 
Empathy works as expected.

Summary: When network settings are set to auto-detect the proxy, Empathy
does not query for/use the configuration URL if it isn't set.  Result:
gtalk/xmpp/others? fail to log in.

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https://bugs.launchpad.net/bugs/997017

Title:
  Empathy not connecting to Gtalk

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