Here's how I fixed it:

sudo mv /etc/rcS.d/S55pppd-dns /etc/rcS.d/S38pppd-dns

By the way, /etc/rcS.d/S39dns-clean (Breezy) changed into /etc/rcS.d
/S55dns-clean (Dapper) as well, although its comments clearly indicate
"It should never be run while ppp is up." - which happens at
S40networking! Somehow the boot order got mixed up quite a bit, causing
hard to troubleshoot problems...

Thanks in advance for investigating and fixing this bug,
-- Stefan D. Schwarz

-- 
pppd makes a resolv.conf backup, then pppd-dns immediately restores it
https://launchpad.net/bugs/49151

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