SOAPUI proxy not working throwing malformed url exception

I am testing SOAP web service using soapUI. I created project and loaded WSDL. I could create request and send that legitimate request to get correct response via soapUI. But when i go to "preferences" and set local proxy 127.0.0.1:8080 (I used Paros proxy); I got exception of "malformed url" for same request as follows. Please let me know where I am mistaking.

Wed Apr 03 17:18:35 IST 2013:ERROR:java.net.MalformedURLException: no protocol: SOAP-Project-soapui-project.xml
java.net.MalformedURLException: no protocol: SOAP-Project-soapui-project.xml
at java.net.URL.<init>(Unknown Source)
at java.net.URL.<init>(Unknown Source)
at java.net.URL.<init>(Unknown Source)
at com.eviware.soapui.impl.wsdl.WsdlProject.<init>(WsdlProject.java:261)
at com.eviware.soapui.impl.wsdl.WsdlProjectFactory.createNew(WsdlProjectFactory.java:62)
at com.eviware.soapui.impl.wsdl.WsdlProjectFactory.createNew(WsdlProjectFactory.java:24)
at com.eviware.soapui.impl.WorkspaceImpl.reloadProject(WorkspaceImpl.java:539)
at com.eviware.soapui.impl.WorkspaceImpl.openProject(WorkspaceImpl.java:665)
at com.eviware.soapui.impl.wsdl.actions.project.OpenProjectAction.perform(OpenProjectAction.java:39)
at com.eviware.soapui.impl.wsdl.actions.project.OpenProjectAction.perform(OpenProjectAction.java:26)
at com.eviware.soapui.support.action.swing.SwingActionDelegate.actionPerformed(SwingActionDelegate.java:89)
at com.eviware.soapui.support.action.swing.DefaultActionList.performDefaultAction(DefaultActionList.java:107)
at com.eviware.soapui.ui.Navigator$TreeMouseListener$1.run(Navigator.java:408)
at java.awt.event.InvocationEvent.dispatch(Unknown Source)
at java.awt.EventQueue.dispatchEventImpl(Unknown Source)
at java.awt.EventQueue.access$000(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.security.ProtectionDomain$1.doIntersectionPrivilege(Unknown Source)
at java.awt.EventQueue.dispatchEvent(Unknown Source)
at java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForHierarchy(Unknown Source)
at java.awt.EventDispatchThread.pumpEvents(Unknown Source)
at java.awt.EventDispatchThread.pumpEvents(Unknown Source)
at java.awt.EventDispatchThread.run(Unknown Source)
Wed Apr 03 17:20:10 IST 2013:ERROR:com.eviware.soapui.impl.support.definition.support.InvalidDefinitionException
com.eviware.soapui.impl.support.definition.support.InvalidDefinitionException
at com.eviware.soapui.impl.wsdl.support.wsdl.WsdlLoader.loadXmlObject(WsdlLoader.java:138)
at com.eviware.soapui.impl.wsdl.support.xsd.SchemaUtils.getDefinitionParts(SchemaUtils.java:535)
at com.eviware.soapui.impl.wsdl.support.xsd.SchemaUtils.getDefinitionParts(SchemaUtils.java:524)
at com.eviware.soapui.impl.support.definition.support.AbstractDefinitionCache.update(AbstractDefinitionCache.java:97)
at com.eviware.soapui.impl.support.definition.support.AbstractDefinitionContext$Loader.construct(AbstractDefinitionContext.java:226)
at com.eviware.soapui.support.swing.SwingWorkerDelegator.construct(SwingWorkerDelegator.java:46)
at com.eviware.soapui.support.swing.SwingWorker$2.run(SwingWorker.java:149)
at java.lang.Thread.run(Unknown Source)
Wed Apr 03 17:22:24 IST 2013:ERROR:java.lang.ClassCastException: org.apache.http.message.BasicHttpRequest cannot be cast to org.apache.http.impl.client.RequestWrapper
java.lang.ClassCastException: org.apache.http.message.BasicHttpRequest cannot be cast to org.apache.http.impl.client.RequestWrapper
at com.eviware.soapui.impl.wsdl.support.http.HeadderRequestInterceptor.process(HeadderRequestInterceptor.java:42)
at org.apache.http.protocol.ImmutableHttpProcessor.process(ImmutableHttpProcessor.java:108)
at org.apache.http.protocol.HttpRequestExecutor.preProcess(HttpRequestExecutor.java:174)
at com.eviware.soapui.impl.wsdl.support.http.HttpClientSupport$SoapUIHttpRequestExecutor.preProcess(HttpClientSupport.java:106)
at org.apache.http.impl.client.DefaultRequestDirector.createTunnelToTarget(DefaultRequestDirector.java:830)
at org.apache.http.impl.client.DefaultRequestDirector.establishRoute(DefaultRequestDirector.java:739)
at org.apache.http.impl.client.DefaultRequestDirector.tryConnect(DefaultRequestDirector.java:565)
at org.apache.http.impl.client.DefaultRequestDirector.execute(DefaultRequestDirector.java:415)
at org.apache.http.impl.client.AbstractHttpClient.execute(AbstractHttpClient.java:820)
at org.apache.http.impl.client.AbstractHttpClient.execute(AbstractHttpClient.java:754)
at com.eviware.soapui.impl.wsdl.support.http.HttpClientSupport$Helper.execute(HttpClientSupport.java:236)
at com.eviware.soapui.impl.wsdl.support.http.HttpClientSupport.execute(HttpClientSupport.java:345)
at com.eviware.soapui.impl.wsdl.submit.transports.http.HttpClientRequestTransport.sendRequest(HttpClientRequestTransport.java:241)
at com.eviware.soapui.impl.wsdl.WsdlSubmit.run(WsdlSubmit.java:123)
at java.util.concurrent.Executors$RunnableAdapter.call(Unknown Source)
at java.util.concurrent.FutureTask$Sync.innerRun(Unknown Source)
at java.util.concurrent.FutureTask.run(Unknown Source)
at java.util.concurrent.ThreadPoolExecutor.runWorker(Unknown Source)
at java.util.concurrent.ThreadPoolExecutor$Worker.run(Unknown Source)
at java.lang.Thread.run(Unknown Source)