I've got notification as usuall (PUSHED UPDATE), installed it without any problems, asked me to reboot the system... rebooted, and everything seems perfect...
EDIT:
I'm using ADSL (PPPoE). This is ADSL connection which requires dialup similar login.
Program update is set to "Ask when available"
I only connect to net using dialup is unchecked
My computer is permanently connected is also unchecked.
I am also using ADSL (PPPoE), but I'm connecting through my router, so I don't have to dial, enter my password and blah, blah, blah... I am connected 24/7, and if sometimes for any reason I turn off my computer, next time when I log into Windows, my connection is right here... I just have to open my mail client or IE, or whatever...
Btw, "My computer is permanently connected" is checked here.