This still affects me in Precise 12.04 LTS Beta. What bothers me is that
I get two dialogs:

1) Password to erase a disk. Behaviour of formatting the disk is inconsistent 
with Disk Utility which does not need a password.
USB creator needs a password for com.ubuntu.usbcreator.format

2) Password for "Installing the Bootloader" times out and then the
installation fails if I'm not there to put in the password.

The errors you get if you do not enter the password, or cancel are
cryptic to average users (dbus, policykit errors).

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https://bugs.launchpad.net/bugs/789242

Title:
  Startup Disk Creator requiring multiple authentications.

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