You were right, php curl extension was not loaded. I just did apt-get install php5-curl and it worked!
I am running it on Ubuntu Server and I install apache2, mysql and wordpress manually I also had to install php module for apache manually. so the problem might be that any idea where it could be coming from? am I supposed to have certain apache modules for this to work other than mysql and php modules?
He is sitting right next to me. The problem is coming from WordPress, I can ping http://www.google.com and it shows up on the firewall but when I search for plugins I get the error and nothing on the firewall.