Hey all, I think this is the most appropriate forum. If not, feel free to move it.
I recently did a fresh install of Windows on my old PC when I gave it to my parents. I installed Picasa to give my mom a software package to do some minor photo editing with (an improvement over the Kodak Easyshare bloatware). When importing photos to Picasa from the flatbed scanner (a Dell photo printer of some sort), an Internet Connection Wizard pops up, which begins eating CPU resources and causes Picasa to become unresponsize.
I have never had this problem before I moved the PC to my parent's house, so I am thinking the issue must be with Dell printer drivers which had to be installed to get the printer up and running (?). It might also be due to a newer version of Picasa, as I hadn't updated it in a while while it was installed on that PC before the move.
My guess is that Picasa wants to go online and check for a newer version, and since no internet connection is present, up pops the dialogue your talking about. My advice is to either setup the internet connection so Picasa can do its thing, or go into the Picasa configuration dialogs, and tell it not to check for a newer version.