I found a simple work around that simply avoids NetworkManager without
removing it. I have not tried the workaround indicated above of deleting
the auto eth0 configuration from Networkmanager's connections list and
creating a new static configuration. In my case, eth0 is treated as
"unmanaged" by NetworkManager. I've not read all of the posts in this
thread so this may be a duplicate comment.

I just installed 8.10_amd64 as a clean install on a system previously
running 8.04.1, and I also encountered this bug. I used a static
configuration during installation from the 8.10 alternate amd64
installation CD. The configuration was written to
/etc/network/interfaces in the newly installed system. While the IP
address and default route of eth0, as reported by ifconfig and route -a,
appear correct, no information for name servers is entered into
/etc/resolv.conf. Pinging my gateway using its IP address works. Firefox
returns a "Page Load Error" due to "Address Not Found".

Manually entering name server IP addresses into /etc/resolv.conf, or
installing the package resolvconf, works around the difficulty.
NetworkManager indicates there is no network connection (the "!" symbol
is displayed by the applet) but so far all network functions are fine.

-- 
wired connection settings are lost after reboot
https://bugs.launchpad.net/bugs/259214
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