Carl:
There's no bug there: we're on purpose defaulting to system-wide connections 
since Oneiric. This means one will need administrator rights to be able to 
create system-wide connection profiles, which explains the popup. If you don't 
want to create a system-wide connection, you should still be able to uncheck 
the "Available to all users" checkbox and be able to create your new 
connection, which will only be availble to yourself. Obvioulsy, this also means 
that "available to all users" connections require adminitrative rights to be 
modified.

Phil, 
Is there anything above that doesn't work with what you're seeing? I suspect 
the issue is simply that your user account is somehow not an administrator.

** Changed in: network-manager (Ubuntu)
       Status: Confirmed => Incomplete

** Changed in: network-manager (Ubuntu)
   Importance: Undecided => Medium

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to network-manager in Ubuntu.
https://bugs.launchpad.net/bugs/964705

Title:
  System policy prevents modification of network settings for all users

Status in “network-manager” package in Ubuntu:
  Incomplete

Bug description:
  This seems like a regression? The screen shot is at
  http://thesii.org/Screenshot.jpg The nearest link I can find is from
  the forum area at http://ubuntuforums.org/showthread.php?p=11467777

  ProblemType: Bug
  DistroRelease: Ubuntu 12.04
  Package: network-manager 0.9.3.995+git201203152001.04b2a74-0ubuntu1
  ProcVersionSignature: Ubuntu 3.2.0-20.32-generic 3.2.12
  Uname: Linux 3.2.0-20-generic x86_64
  ApportVersion: 1.95-0ubuntu1
  Architecture: amd64
  CRDA: Error: [Errno 2] No such file or directory
  Date: Sun Mar 25 19:36:45 2012
  IfupdownConfig:
   auto lo
   iface lo inet loopback
  InstallationMedia: Lubuntu 12.04 "Precise Pangolin" - Alpha amd64 (20120323)
  NetworkManager.state:
   [main]
   NetworkingEnabled=true
   WirelessEnabled=true
   WWANEnabled=true
   WimaxEnabled=true
  ProcEnviron:
   LANGUAGE=en_GB:en
   TERM=xterm
   LANG=en_GB.UTF-8
   SHELL=/bin/bash
  SourcePackage: network-manager
  UpgradeStatus: No upgrade log present (probably fresh install)

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