The error messages are only because the o-hand repository is off-line for the moment, it'll probably be OK later. No worries there. The difference between apt-get and the application manager is that apt-get simply tells you (through the messages you noticed) and gets on with it (i.e. it'll let you use the other updates just fine), while the application manager won't have any of it and sticks to the old, previous update, until you disable the "offending" repository in the application catalogue list.

(The rest of the messages - those not starting with 'Err' - are normal apt-get messages.)