This is fixed with the following upload:

update-manager (1:0.147.2) natty; urgency=low

  * UpdateManager/backend/InstallBackendAptdaemon.py:
    - no not trigger a apport exception on user auth issues and if
      the user does not type the password in time (LP: #626798)

 -- Michael Vogt <[email protected]>  Tue, 05 Apr 2011 15:49:58
+0200


** Changed in: update-manager (Ubuntu Natty)
       Status: Triaged => Fix Released

** Changed in: update-manager (Ubuntu Natty)
     Assignee: Canonical Foundations Team (canonical-foundations) => Michael 
Vogt (mvo)

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https://bugs.launchpad.net/bugs/704667

Title:
  Update-manager crashes on fresh natty installs-- NotAuthorizedError:
  org.freedesktop.PolicyKit.Error.NotAuthorized: ('system-bus-name',
  {'name':  ':1.107'}): org.debian.apt.upgrade-packages

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