I quotes the iface line for eth0 and now it works miraculously.
hope a fix gets there before intrepid is out.

laptop:~$ cat /etc/network/interfaces
auto lo
iface lo inet loopback
auto eth0
#iface eth0 inet dhcp

-- 
[regression] devices/interfaces not set to "auto" in /etc/network/interfaces 
get blacklisted in 0.7 (intrepid) but were managed in 0.6 (hardy and before)
https://bugs.launchpad.net/bugs/279262
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