Also got the problem here. I thought it to be Bug #432631, but this
description fits better.

export no_proxy=$(echo $no_proxy | sed 's/,$//')
Does help to alleviate the problem, but does not fix it. Thats why I think both 
this bug and #432631 is the culprits in breaking apt through a proxy in 10.04.

We on a university campus, behind a proxy server, really want this bug
to be fixed. We have local ftp repo's and use http internet repo's. But
the ignored hosts in gnome-network-properties is ignored.

-- 
[lucid] setup_http_proxy_env constructs no_proxy incorrectly
https://bugs.launchpad.net/bugs/534225
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