Thanks for this additional information.
Can you please try to run it without "sudo" ? Just as your regular user?
Does that help? You will need a installed gksu for later.
Thanks,
Michael
** Changed in: update-manager (Ubuntu)
Status: Incomplete => Confirmed
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"update-manager -d" in Feisty presents no option to upgrade to Gutsy
https://bugs.launchpad.net/bugs/129392
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