With the help of an earlier post I found on on setuid problems, I
performed the following

 1. Rebooted in recovery mode
 2. In the root executed the following:

 chown root:root /usr/bin/sudo
 chmod 4111 /usr/bin/sudo

 3. Rebooted
 4. I was now able to install the 5 updates (mentioned in my previous comment).
 5. sudo now works!

However, I am still unable to perform an install on any of the software in 
"Ubuntu Software Center"
The same error occurs (left-right jitter movement of the authenticate popup) 
when I clock on install.

--V

-- 
Unable to install from "Software Center"
https://bugs.launchpad.net/bugs/520349
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