Thanks for your bugreport.
I added a fix for this to karmic
** Changed in: software-properties (Ubuntu)
Status: New => Fix Committed
** Changed in: software-properties (Ubuntu)
Assignee: (unassigned) => Michael Vogt (mvo)
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[jaunty] Software Sources panel does not remember auto-update settings after
upgrade from hardy
https://bugs.launchpad.net/bugs/387704
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