I get the same problem with the x86 netbook edition (installed with
wubi). I cannot install programs or update installed programs. only
installing software that are not .deb files works for me... Once I type
the password I get the same dialog as the one posted before, and if I
just wait it will disappear but the software does not start installing
or updating! Nothing happens if I click the "authenticate button", and
if I close the window the software might start updating but it fails in
the end of the process as I guess it is not actually authenticated...


I do however not have the issue related to the unlocking of the screensaver as 
mentioned in the former post.

As long as this is an issue I really cannot use ubuntu.

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Authentication Hangs (no progress indication)
https://bugs.launchpad.net/bugs/653615
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