You can safely change useProxy to 0,or as root open synaptic (system ->
administration -> synaptic package manager ) and go to "settings -> preferences
-> network" and change it there. This is a long standing issue in synaptic. You
can read further comments about this issue in bug 13661 . On this bug is fixed,
update-manager won't have to check for synaptic proxy settings anymore.
I'm closing this report because it was a configuration issue and not a bug, and
the proxy "usability" issue is already filed in another report.
Thanks for your help to make ubuntu better and don't hesitate to submit
any new bug.
** Changed in: update-manager (Ubuntu)
Status: Incomplete => Invalid
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Update manager tries to use a network proxy even though it's been disabled
https://bugs.launchpad.net/bugs/506063
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