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Something that I don't understand about privoxy

I first installed the Tor+browser bundle (the one packaged as a portable installation) it worked perfectly, I could see the little green Tor icon in the notification area (only the Tor icon). I used yahoo mailI with _javascript_ enabled and had no problems.

Then I decided to delete everything and install Firefox + installation bundle for Windows. Now Tor works OK again, but I now have the Privoxy icon in the notification area. Yahoo mail is now broken. To get yahoo mail work as before I have to right click the privoxy icon and unckeck the Enable option.

So here are my questions:
First of all, if privoxy is needed for security, why wasn't it there with the former package?
Did I compromise security when I used without the blue Privoxy icon?
Do I compromise security when I use with the Enable option unchecked?

Thanks for all the help.