I can confirm this bug in Beta1 with all updates applied.
Ubuntu 10.04 beta1 AMD64
When, for example, "apt-get update" is running the icon appears in the pannel 
(grayed out). But when the command finish the icon dissapears, even if there is 
updates to apply; and never appears automatically.

I have the gconf entry /apps/update-notifier/auto_launch as false

update-notifier:
  Installed: 0.99
  Candidate: 0.99
  Version table:
 *** 0.99 0
        500 http://us.archive.ubuntu.com/ubuntu/ lucid/main Packages
        100 /var/lib/dpkg/status
     0.98 0
        500 cdrom://Ubuntu 10.04 _Lucid Lynx_ - Beta amd64 (20100317.1)/ 
lucid/main Packages

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[LUCID] update-notifier no longer shows update icon even with auto_launch=false
https://bugs.launchpad.net/bugs/549799
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