Replace WinINet by WinHTTP component. Both have very close APIs, and the 2nd does not create any UI interaction, but will return error codes, just like any other API. The UI part of WinINet may be a good idea for some software, but it sounds like if does not fit your needs.
Try modifying SOAPHTTPTrans to handle the error silently. In THTTPReqResp. HandleWinInetError, there is ultimately a call to the error dialog.
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