I'm experiencing the same problem, but in Lucid (same key though):

W: GPG error: http://archive.canonical.com lucid Release: The following
signatures were invalid: BADSIG 40976EAF437D05B5 Ubuntu Archive
Automatic Signing Key <[email protected]>

System was fully upgraded (until today).

More info:
$ lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description:    Ubuntu 10.04.4 LTS
Release:        10.04
Codename:       lucid

$ uname -a
Linux vaughan 2.6.32-41-generic-pae #88-Ubuntu SMP Thu Mar 29 14:24:36 UTC 2012 
i686 GNU/Linux

Regards.

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https://bugs.launchpad.net/bugs/941863

Title:
  Reloading repositories with synaptics generates W: A error occurred
  during the signature verification. The repository is not updated and
  the previous index files will be used. GPG error:
  http://archive.ubuntu.com precise Release: The following signatures
  were invalid: BADSIG 40976EAF437D05B5 Ubuntu Archive Automatic Signing
  Key <[email protected]>

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