I don't know how to update this as resolved but I think its fixed now.
All I did was went in to the Update managers settings
(System>>Administration>>Update Manager>>Settings...), on the Ubuntu
Software tab I unchecked "CD-Rom with Ubuntu 10.04 LTS 'Lucid Lynx'" in
the Installable from CD-ROM/DVD Drive.
that fixed the error.
** Changed in: update-manager (Ubuntu)
Status: In Progress => Fix Released
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https://bugs.launchpad.net/bugs/579105
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