Do you mean removing eth0? My internet connection has always worked;
however, I've never had the nm-applet running in the notification area.
The only way to make it show up is to run command
"sudo /etc/init.d/NetworkManager restart". This puts the network manager
in the notification area although it shows no physical connection. This
whole time though actually having a connection. I only need it up there
so I can connect and disconnect my vpn as I allways have in Hardy.
Does this still sound like your issue?

-- 
[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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