Yes you can. This service takes away the user or network admin responsibility of knowing your proxies and allows the computer to autosense this settings from the network. In controlled situations where you know of all the services running on the network, you can safely disable this service.
Might even be a good security practice, for this service could be a gateway to man-in-middle attacks if not kept tabs on.
If there is a forefront server on the network you should probably leave it be, if these settings isn’t pushed out through policies.
References:
http://www.ehow.com/how_5783813_disable-winhttp-proxy-auto_discovery.html
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