Hi, 
Thanks for reporting this bug.
Does it also tell you that "Encountered a section with no Package: header"
It could eventually be a duplicate report of the Bug #346386.
In this case you could find an answer to your specific problem here:
http://ubuntuforums.org/showthread.php?t=1750755&highlight=Encountered+section+Package%3A+header

Otherwise please give log information about your system by typing on terminal:
apport-collect 804983

** Changed in: update-manager (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/804983

Title:
  update manager stucks in middle of process

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