Go here: http://www.rootninja.com/wordpress-automatic-updates-broken-asks-for-connection-information-fixed/
Excerpt:
The real problem is a php function called getmyuid() which “Gets PHP script owner’s UID”. Ok, so permissions and ownership may still be an issue for you, and you may not even have the right temp directory set up that file.php is looking for, but if everything else is correct, go edit wp-admin/includes/file.php and change the getmyuid() call to posix_getuid() instead. You can expect to have access to the functions, but to avoid any warnings or errors it checks if the functions are callable first, so you may as well change that one too. See below for the detailed change:
function get_filesystem_method($args = array()) {
$method = false;
if( function_exists(‘posix_getuid’) && function_exists(‘fileowner’) ){
$temp_file = wp_tempnam();
if ( posix_getuid() == fileowner($temp_file) )
$method = ‘direct’;