Downloading URL as Local System Account in Service

Greetings.

I'm developing a Delphi 7 application that runs as a service in Windows environment.
The application downloads file from a given URL.

The application is able to download the file from a URL under these following conditions:
* service runs as a user, able to download from URLs with these prefix: http:// and https://
* service runs as system account, able to download from URLs with the prefix http://, **but not** with https://

I really need the application to download from https:// as a system account (due to the need of interactive logon feature).

I've tried downloading the URL using:
* the manual way through InternetOpen(), InternetOpenURL(), InternetReadFile() and InternetCloseHandle()
* using the inbuilt class such as: TDownLoadURL

both results in the same manner: unable to download files from https:// (when loading the service as system account / Local System)

when using the manual download, i was able to trap the following extended error code through GetLastError():


Does anybody have experiences with this ?
Is there any Access Control that I need to grant to the Local System Account ?
Is there any component that specialize in https downloading ?

Thank you in advance.