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Do I absolutely have to install updates of 11.10 before I can upgrade to 12.04? The steps on the ubuntu sites says so.

I'm pretty sure in the past that the upgrade software itself was updated, so you have to update the old packages first to make sure the new stuff installs properly.

At any rate, better safe than sorry.

In the update manager, it is not showing that a new version is available.

It will, as soon as the release data percolate through the mirror network and reaches the mirror you are using.

or ...

press the super key type : update-manager and it will tell you there is an upgrade on top. Hit the upgrade button....