I also had this issue in Ubuntu 10.10 32bit, however I was able to
mostly resolve it by modifying my /etc/apt/apt.conf according to
zerozone's post in the following link:

http://ubuntuforums.org/archive/index.php/t-83401.html

I wasn't able to see any "For Purchase" apps, however I was able to
install and update from both the Update Manager and the Ubuntu Software
Centre. Unfortunately this doesn't seem to resolve the Empathy issue.

For reference, here is what my apt.conf looks like:

APT::Authentication::TrustCDROM "true";
Acquire::http::proxy "http://domain\username:[email protected]:port/";;
Acquire::ftp::proxy "http://domain\username:[email protected]:port/";;
Acquire::https::proxy "http://domain\username:[email protected]:port/";;

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https://bugs.launchpad.net/bugs/545134

Title:
  Ubuntu Software Centre ignores  system and apt Proxy settings

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