Attempted to update all at once (from 9.10 official out of CD and up to date).
UbuntuOne tool started to work properly.
Now I suppose we should confirm that update resolves the issue (as for many 
users and me too).

BTW, after update this live USB stick installation told me it can't
startup system (unable to find live filesystem).

** Changed in: ubuntuone-client (Ubuntu)
       Status: Incomplete => Confirmed

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UbuntuOne sync applet reported it's too fresh for server-side to support it. 
1st time ever used account and sync.
https://bugs.launchpad.net/bugs/513807
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