Remains to be a problem for me. Did you try 64bit?
$ apt-cache policy update-manager
update-manager:
Installed: 1:0.152.25.5
Candidate: 1:0.152.25.5
Version table:
*** 1:0.152.25.5 0
500 http://ca.archive.ubuntu.com/ubuntu/ oneiric-updates/main amd64
Packages
500 http://security.ubuntu.com/ubuntu/ oneiric-security/main amd64
Packages
100 /var/lib/dpkg/status
1:0.152.25 0
500 http://ca.archive.ubuntu.com/ubuntu/ oneiric/main amd64 Packages
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https://bugs.launchpad.net/bugs/891255
Title:
Update impossible with update-manager -- loses connection to daemon
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