I have installed a new Ubuntu server and have set everything up for Wordpress.
I have also extracted mySite directory in the /var/www/ and did a
mysql -u mysqlusername -p databasename < blog.bak.sql to restore the data to the database.
It all worked smooth and works beautifully.
The only problem I have discovered is when I try to auto-update the plugins.
Please click to see the screenshot (I don't have enough reputation to insert a screenshot here) http://img690.imageshack.us/img690/970/76811016.png
Well, I have never setup any FTP on my previous server. How comes this is now asking me this information? And yes I was able to auto-update plugs on my other server without a problem.