This bug was fixed in the package network-manager - 0.9.6.0-0ubuntu3

---------------
network-manager (0.9.6.0-0ubuntu3) quantal; urgency=low

  * debian/patches/dnsmasq-dbus-updates.patch: make sure the no_reply flag is
    set for the SetServers message we send to dnsmasq -- we're not expecting a
    reply and the messages otherwise stick around in the queue as pending.
    (LP: #1033600)
  * debian/patches/lp990011_use_tempaddr_sysctl_default.patch: properly query
    both /etc/sysctl.d/10-ipv6-privacy.conf and /etc/sysctl.conf for the value
    of use_tempaddr. (LP: #998223)
  * debian/patches/dnsmasq-dbus-updates.patch: fail DNS caching updates (so as
    to not write 127.0.0.1 to resolv.conf) if the lists of device configs were
    empty (no nameservers or domains). (LP: #1023486)
 -- Mathieu Trudel-Lapierre <[email protected]>   Thu, 16 Aug 2012 00:46:06 
-0400

** Changed in: network-manager (Ubuntu)
       Status: In Progress => Fix Released

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https://bugs.launchpad.net/bugs/1023486

Title:
  Cannot resolve domain names if eth0 is in /etc/network/interfaces

Status in “network-manager” package in Ubuntu:
  Fix Released

Bug description:
  I installed two systems with Quantal via a preseed. After booting,
  neither of them could connect to the web. A workaround was to remove
  the eth0 section from /etc/network/interfaces (which the preseed
  added). This is the interfaces file before:

  auto lo
  iface lo inet loopback

  auto eth0
  iface eth0 inet dhcp

  After restarting network-manager service it worked again immediately.

  It was also suggested that the state of resolv.conf on the system
  might be a problem:

  nameserver 209.6.3.210
  nameserver 127.0.0.1
  search lexenab

  Removing nameserver 127.0.0.1 and restarting networking/resolvconf and
  network-manager seemed to fix it.

  (having looked at the resolv.conf file after it worked again the
  127.0.0.1 is back, which is interesting)

  ProblemType: Bug
  DistroRelease: Ubuntu 12.10
  Package: network-manager 0.9.4.0+git201206081144.2efeac8-0ubuntu1
  ProcVersionSignature: Ubuntu 3.5.0-4.4-generic 3.5.0-rc6
  Uname: Linux 3.5.0-4-generic x86_64
  ApportVersion: 2.3-0ubuntu4
  Architecture: amd64
  Date: Wed Jul 11 11:41:31 2012
  InstallationMedia: Ubuntu 12.10 "Quantal Quetzal" - Alpha amd64 (20120711.1)
  ProcEnviron:
   TERM=xterm
   PATH=(custom, no user)
   LANG=en_US.UTF-8
   SHELL=/bin/bash
  SourcePackage: network-manager
  UpgradeStatus: No upgrade log present (probably fresh install)

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