Taken from the WordPress support forums. Numerous people don’t appear to be able to install the WooThemes Plugin Updater plugin. Here is a link to manually download and install it. The Updater plugin can be downloaded here: http://woodojo.s3.amazonaws.com/downloads/woothemes-updater/woothemes-updater.zip
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Disable specified WordPress plugins when doing local development
Look up Mark Jaquith for more info.