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I20111101 Help > Check for Updates fails if there is any repository that could not be reached, even if there are updates found in other repositories. Today a problem contacting some other random repository preventing me from updating my SDK to the latest build. This means I have to go into preferences and disable the problematic repo before I can upgrade (and then will probably forget to re-enable it). I think as long as updates are found it should go ahead and just ignore or log the problem found with unrelated sites.
*** This bug has been marked as a duplicate of bug 349628 ***