I think I have this bug as well. I upgraded from 8.04 to 8.10. I had a
static IP wired connection under 8.04 which worked but this stopped
working after upgrading to 8.10.

I followed advice from messages above and set

[ifupdown]
managed=true

In my /etc/NetworkManager/nm-system-settings.conf file which allowed me
to select a wired connection under NetworkManager, but still I didn't
have an internet connection.

When I commented out the line:
iface eth0 inet static
and added auto eth0
in my /etc/network/interfaces file I can at least connect through my wired 
connection using DHCP but putting in a static IP address still won't work.

Something that I have noticed though which I think is odd:
When I set my wired connection to use a static IP address, I can't use Firefox 
to open any websites BUT I am able to ping my IP address and connect via ssh 
from another machine. So I guess this suggests that it's just outgoing traffic 
that doesn't work when I use my static IP settings.

-- 
[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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