I added "-y" to the "apt-get" command in /etc/cron.daily and that seemed to fix things:
# vi /etc/cron.daily/auto-update
# cat /etc/cron.daily/auto-update
#!/bin/bash
/usr/sbin/cron-apt
/usr/bin/apt-get -y dist-upgrade
My ongoing experiences with Ubuntu, and later Mythbuntu, as a media center with MythTV. I'm also using the system for a virtual machine server, a mediawiki server and a general all around home infrastructure base.
# vi /etc/cron.daily/auto-update
# cat /etc/cron.daily/auto-update
#!/bin/bash
/usr/sbin/cron-apt
/usr/bin/apt-get -y dist-upgrade