Thanks for your bugreport. Are you using "in.archive.ubuntu.com" as your
default mirror? It appears that there have been issue with that when it
comes to upgrading to maverick. If you switch (temporarely) to
archive.ubuntu.com as your mirror, does that fix the problem?

About the network conection - its a known bug that network-manager does
not detect dialup as a valid connection. The message in update-manager
is wrong, you can just ignore it (sorry for that).

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update manager does not install packages
https://bugs.launchpad.net/bugs/654313
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