I found the solution to my problem here: 
http://ubuntuforums.org/showthread.php?t=818846&highlight=update+manager+hang
By taking my work's domain (which I'm not really even on) out of the hosts file 
update manager was able to complete.

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Adept Version Upgrade stalls at the point of installing packages
https://bugs.launchpad.net/bugs/153968
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