I can't reproduce this in Karmic neither with 1:0.126.6 or 1:0.126.9 .
When update-notifier popup update-manager the install button is enabled
and when I click on it, the password dialog pops up.
This is probably related to the following message in Martin's log
SystemError: E:I wasn't able to locate file for the
xulrunner-1.9.1-gnome-support package. This might mean you need to manually fix
this package.
Could anyone reproducing this issue attach his ~/.xsession-errors file ?
** Changed in: update-manager (Ubuntu)
Status: Confirmed => Incomplete
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Update Manager, "install" button does nothing when u-m was opened by itself
https://bugs.launchpad.net/bugs/414181
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