Thanks Joel. Your solution worked perfectly for me. I was seeing the
hang on update manager as well as a prompt when executing a command in
the terminal saying "Could not resolve host *******".

I think this occurred because after installation and the initial
configuration I added the domain name to Ubuntu in the network setup
program on the General tab. That change didn't get added to the hosts
file.

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Update manager hangs when localhost can not be resolved
https://bugs.launchpad.net/bugs/234879
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