Confirming after installing Gutsy final in vmware, without Internet connection. 
After the installation completed, lines in sources.list are commented out and 
another comment says it was done by the installer, i.e.:
# Line commented out by installer because it failed to verify:
# deb http://security.ubuntu.com/ubuntu gutsy-security main restricted

If this is indeed done by intention, then at least update-manager should
give a warning there are no Internet sources enabled. Now update-manager
silently completes a check for updates, saying the system is up to date.

** Changed in: ubiquity (Ubuntu)
       Status: New => Confirmed

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No internet removes All download repositories sources
https://bugs.launchpad.net/bugs/154095
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