That's really weird... it should work then, that's the only thing it checks. Is it still not working (maybe it was a temporarily issue)? Since I can't reproduce this, it means something outside Y PPA Manager is acting weird...
As a work-around, you can edit y-ppa-cmd:
gksu gedit /usr/bin/y-ppa-cmd
And replace the "testConnection" function "if" content to "echo Internet connection - ok" (lines 55 to 57).