Proxy means 'on behalf of,' its another machine that caches pages and passes them onto you. AOL uses this to avoid going out over internet pipes to get page info that has already been accessed by someone else on the AOL network, it updates - in theory, only when changes are made to that page. This used to cause login problems to various servers, hence seeing "AOL users click here!" on various websites. In this situation though the proxy would be used, in theory, to bypass any restrictions that are local. So instead of accessing
http://www.fatchicksinpartyhats.com I'd be accessing
http://www.myproxyserver.com which would probably have no restrictions and then I would tell myproxyserver.com to access the fat chicks site for me (on behalf of).
IP address, well, thats your identifier on the internet. Changing his IP address shouldn't really fix anything in this situation.
DNS is domain name system, only numbers mean anything to computers so ironmagazineforums.com translates to an IP address somewhere out on the internet. Sometimes multiple domains can be hosted in a single server though, in this case though that isn't a problem.
The word fuck,
http://www.nailmaster.ru/fuck.html