Confirmed Ubuntu 9.10 (Karmic).
The largest ISP in Thailand (True Internet) started redirecting failed
DNS lookups recently to search/ads pages including .local. They also
control most of the wifi hotspots in the country.
** Changed in: avahi (Ubuntu)
Status: Fix Released => Confirmed
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Some ISPs have .local domain which disables avahi-daemon
https://bugs.launchpad.net/bugs/327362
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