This is still a problem in Ubuntu 13.10. It just keeps trying to connect 
without success and there is no error message that it can't connect.
 And when I press stop it's telling me that "The software on this computer is 
up to date". Why is it saying that? It can't know it because it couldn't check 
it.

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https://bugs.launchpad.net/bugs/651229

Title:
  update manager doesn't use proxy authentication info and gets no
  internet access

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